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Integrated Device: Idt To Acquire Zmdi For $310 Million

The following excerpt is from the company's SEC filing.

Adds $20M of quarterly revenues to IDT at 57% gross margins

Accretive to earnings in first full quarter following close

IDT gains a growing Automotive & Industrial business, with immediate sales leverage for current products

Creates an industry franchise in Intelligent Power semiconductors. ZMDI adds new digital power products addressing Communications Infrastructure and Data Center requirements

ZMDI products are largely sole-sourced, with very long product life cycles and high margins. Synergies recognized in first year of operation will reach IDTs target business model of 60% GM < br>

) (NASDAQ: IDTI) today announced an agreement to acquire privately held ZMDI (Zentrum Mikroelektronik Dresden AG) for total consideration of $310M in cash. The acquisition provides IDT with a highly regarded Automotive & Industrial business, and extends their technology leadership in high performance programmable power devices and timing & signal conditioning.

Automotive & Industrial provides a significant new growth opportunity. IDT gains immediate leverage for new designs in Wireless Charging, Power Management, and Timing & Signal Conditioning. ZMDIs business is already well established and positioned for growth, and benefits immediately from IDTs scale and technology.

This move accelerates progress to our $800M annual revenue goal within our industry benchmark financial performance by over a year said Gregory Waters, IDT President & CEO. IDTs strategy is unchanged, but our product and technology position is significantly expanded. Our target market segments of Consumer, Communications, and High Performance Computing all benefit from additional product, revenue, and customer relationships that bolster our...


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