Positioning itself to address the mid to high-end feature phone, smart phone, and PDA markets, CA-based semiconductor house Zoran has signed a definitive agreement to acquire Israel-based Emblaze Semiconductor.
Under the terms of the agreement, Zoran’s wholly-owned Israeli subsidiary, Zoran Microelectronics, will acquire all of the outstanding common shares of Emblaze – a provider of semiconductors for high volume mobile multimedia appliances in the telecommunication, consumer and security markets – for $54.2 million in cash.
In addition, Zoran and Emblaze have entered into support, development and licensing agreements to provide customer support for the mobile phones and systems developed by Emblaze Mobile.
Zoran expects the transaction to be accretive to the company’s earnings before amortization and goodwill in the second half of 2005. Zoran does not anticipate that it will have any impact on its current earnings forecast for the remainder of the 2004.
The deal is subject to applicable regulatory approvals and other customary closing conditions and is expected to be completed in the third quarter of 2004.