Swiss sale

, a producer of analogue and mixed-signal semiconductors, today announced plans to acquire

, a fabless developer of ultra-low power analogue, radio frequency (RF) and digital integrated circuits (IC).

In 2004, Switzerland-based Xemics generated net sales of about $23 million, mostly from custom and standard IC products for battery-powered applications, remote metering, embedded systems and medical devices. Gross margin during this period was 48 percent.

Semtech International, Semtech's wholly-owned Swiss subsidiary, will pay $43 million in cash to the shareholders of Xemics and has agreed to pay up to an additional $16 million if certain performance milestones are met within a twelve month period ending April 30, 2006.

Jason Carlson, Semtech's President and CEO commented: “We have established several expectations to come out of the Xemics acquisition. First, we expect to generate and promote two or three new product lines from their technology over the next three or so years.

“Second, these products should contribute nicely to top line sales and net income growth, with gross margin forecasted above 55 percent.

“Third, Xemics is expected to give us immediate access to relatively new end-markets, such as automotive, home security, industrial and medical. Finally, we should be able to double the content Semtech offers to existing portable and communications customers."

The transaction is expected to close within the next ten days.