Virage proposes ARC acquisition

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San Jose-based Virage Logic has announced that it intends to acquire the UK-based IP provider ARC International to expand its existing portfolio of silicon IP.

The proposed all-cash transaction values ARC at 16.25 pence per share, or an equity value of approximately £25.2m ($41m).

The directors of ARC have recommended unanimously that ARC's shareholders accept the offer, and Virage Logic expects that the offer document will be mailed to ARC shareholders shortly.

The transaction is expected to close by the end of Virage Logic's first fiscal quarter of 2010, which ends on 31 December 2009. The offer is subject to certain limited closing conditions, including that at least 90 per cent of the ARC shares have been tendered into the offer.

'With approximately $24m in revenue for the trailing 12 months ending 30 June 2009 and more than 150 customers, ARC would significantly expand our market opportunity to include microprocessor cores, the largest segment of the semiconductor IP market,' said Dan McCranie, Virage Logic's executive chairman.

In 2004, ARC International was named by Deloitte as one of the fastest growing high-technology companies in the UK.