Microchip to acquire Powersmart

Microchip Technology has signed a definitive agreement to acquire PowerSmart, a privately held fabless semiconductor company.

Microchip will pay approximately $54 million in cash, and will assume a balance sheet with approximately $4 million in cash and other net assets, and assume certain employee stock options.

The transaction has been approved by the boards of directors of both companies and is expected to close by June 15, 2002, following approval by PowerSmart’s stockholders.

Headquartered in Shelton, CT, and with operations in Plano, TX and Needham, MA, PowerSmart is a four-year old company formed as a spin-off from Duracell with about 40 employees.

PowerSmart develops and sells high-accuracy field-programmable embedded control ICs and battery sensors based on these ICs.

PowerSmart posted net sales of approximately $1 million in calendar year 2001, and is expected to contribute approximately $7 to $8 million in revenue to Microchip in fiscal year 2003, and about $14 to $16 million in revenue in fiscal year 2004.