Exar Corporation (EXAR) Buys Cadeka Microcircuits For $29 Million Plus Earn-Outs
Exar Corporation (NASDAQ:EXAR) is a Fremont, California based company that is known for being a leading provider of high-performance analog mixed-signal products and data management solutions. Exar has acquired Cadeka Microcircuits. The transaction happened on Friday July 5th and the deal includes $29 million in initial consideration, which will be paid in a combination of cash and stock. There will also be an earn-out against net revenues contributed by Cadeka. Cadeka has operations in Loveland, Colorado; Shenzhen, China; and Wuxi, China.
“The Cadeka team has worked together in various formations for the better part of 25 years and brings to Exar deep product and design experience in the area of high-performance and precision analog circuit design and product development,” stated Exar President and CEO Louis DiNardo. “Cadeka’s products provide best in class performance and, in many cases, are direct or indirect replacements for solutions from Analog Devices, Linear Technology, and National Semiconductor, which was acquired by Texas Instruments. We expect that the acquisition will be neutral to modestly accretive to our profitability immediately. When we couple Cadeka’s product offering with our global presence and reach, we will be able to grow revenue quickly and provide meaningful operating leverage.”
Cadeka designs precision operational amplifiers, instrumentation amplifiers, filters, data converter products, and comparators. The company is a global supplier of over 400 high-performance analog and mixed-signal semiconductors. Cadeka’s President and CEO Gary Ross will be joining Exar and will report directly to Exar president and CEO Louis DiNardo.