Zoran Corp. (Nasdaq: ZRAN) announced today that it had it has signed a definitive agreement to acquire Yoqne'am-based fabless integrated circuit (IC) manufacturer Oren Semiconductor.
Oren provides demodulator ICs for the global high definition television market. Zoran said that Oren's front-end demodulator ICs complemented its HDTV processors and that they would enable Zoran to provide complete, cost-effective solutions that would accelerate the transition from analog to digital TV worldwide.
Zoran, which already owns 17% of Oren, acquired in August 2003, will acquire the remainder of Oren's outstanding stock for $44.6 million in cash and stock. The total imputed value of the transaction including Zoran's share would be $53.5 million. The transaction is subject to applicable regulatory approvals and other customary closing conditions and is expected to be completed during the current quarter.
Zoran says it expects the transaction to be accretive to its earnings no later than the first quarter of 2006, and that it will not have a material impact on the company's recent guidance for the second quarter of 2005. When it released its first quarter results, Zoran said it saw second quarter revenue of $80-90 million, and gross profit margins of 48-50%. It expects a net loss per share of $0.00-0.06.
"We have worked with Oren for over a year to integrate its products into our platform and deliver a series of improved solutions for the growing digital television markets," said Zoran president and CEO Dr. Levy Gerzberg. The Oren team will join Zoran's DTV division led by Ram Ofir, senior vice president and general manager. We welcome the Oren team to Zoran."
Published by Globes [online], Israel business news - www.globes.co.il - on May 9, 2005