Microchip Technology Subsidiary SST Acquired Novocell

Microchip Technology, Inc., provider of microcontroller, mixed-signal, analog and flash-IP solutions, through its Silicon Storage Technology, Inc. (SST) subsidiary, and Novocell Semiconductor, Inc. announced that Microchip and SST have signed a definitive agreement to acquire Novocell.

The acquisition was approved by the boards of directors of each company and was announced at the 2013 Design Automation Conference (DAC) in Austin, TX.

The terms of the deal are confidential.

The transaction is expected to close in early June 2013 and is expected to be immediately accretive on a non-GAAP basis.

"We are pleased to announce the acquisition of Novocell and are expecting great things as we integrate the technology into our ever-expanding portfolio of IP solutions," said Mark Reiten, VP of technology licensing for SST, a wholly-owned subsidiary of Microchip. "This acquisition provides our customers with valuable and differentiated technology and helps us to enable their designs with an even more comprehensive set of solutions, expanding our position as a leading memory IP supplier."

"We are extremely happy to become part of SST and the Microchip family and are excited by the strategic possibilities available to us, moving forward, from both a business as well as a technology perspective," stated Walter Novosel, Novocell’s president and CTO. "Novocell has continued to grow its portfolio of non-volatile-memory IP solutions since its inception, and we fully expect the technology to see an increased adoption from joining a leader like SST in the memory IP market. With SST’s offerings in the high-density arena, we can concentrate on not only expanding our customer base, but also growing the footprint that SST has built with customers worldwide in low-density OTP and MTP memory."

Under the acquisition agreement, Novocell will become a wholly-owned subsidiary of SST. SST and Novocell are committed to a seamless customer transition. SST plans to invest in continuing, designing, developing and extending Novocell’s product portfolio and roadmap.