Tech Dealmaker Awards

Fishman

Norwood-based Analog Devices Inc. (ADI) a provider of signal-processing technology, completed two separate deals at the end of 2007; one to sell its CPU voltage regulation and PC thermal monitoring line to Phoenix-based integrated circuit manufacturer ON Semiconductor Corp. for $185 million in cash on Nov. 8, 2007, and the other to sell its cellular handset radio and baseband chipset operations to Taiwan-based semiconductor company MediaTek Inc. for $350 million.

ADI recorded a one-time gain related to this transaction in the first quarter of fiscal 2008, which ended Feb. 2, 2008. ADI, whose technologies are used for converting, conditioning, and processing light, sound, temperature, motion, and pressure into electrical signals used in electronic equipment, sold those two segments of their business to invest more in higher growth areas. “During 2007, ADI intensified its focus on opportunities that should produce solid growth, high and sustainable margins, good return on research and development investments, and high return on assets and equity,” a company spokesperson said. “As such, one of the strategic decisions made was to divest the cellular handset radio and baseband modem chipset business.”

By selling these businesses, ADI expects better returns for its investors, as evidenced by the improving profit margins, a spokesperson said.

Analog Devices recently reported that its annual revenue grew 6 percent.

— Bridget Botelho

Category

Hardware

The Deal

Analog Devices Inc. sells CPU Voltage and PC thermal monitoring product line to ON Semiconductor Corp. and MediaTek Inc. in 2007 deals

Key Executives

Analog Devices Inc.’s CEO Jerry Fishman; JiChang Hsu, general manager of MediaTek’s wireless business; and Keith Jackson, president and CEO, ON Semiconductor.

Deal advisers

Financial: CitiGroup Inc.
Legal: Davis Polk & Wordell

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