Audio chip developer Wolfson Microelectronics today announced it is being snapped up by US rival Cirrus Logic in a £291 million deal.
Wolfson chairman Michael Ruettgers urged shareholders to accept a 235p-a-share offer as the company battles a slump in performance. In response, shares in Wolfson, which was spun out of Edinburgh University in 1984, leapt 73% to 232p.
The firm, which designs audio chips for tablets and smartphones, today posted first-quarter revenues of $28.8 million (£17.1 million), down from $48.1 million a year earlier. Wolfson’s chips were in the 3G version of Samsung’s Galaxy S4 but not in the 4G version.
“The board of Wolfson believes that this is an attractive offer for Wolfson shareholders,” said Ruettgers.
Nasdaq-listed Cirrus said it hoped the purchase of Wolfson would help to expand its range.
Chief executive Jason Rhode said: “Wolfson has a rich history of audio innovation, a broad catalogue of audio products and a first-class customer list.” The deal will be financed by a combination of existing cash and $225 million in debt funding.
