Cirrus Logic announces acquisition of Lion Semiconductor to bring fast charging IC products

 Cirrus Logic Announces Agreement to Acquire Lion Semiconductor

Acquisition of fast-charging IC products will expand the company's high-performance mixed-signal technology portfolio

AUSTIN, Texas, July 9, 2021: Cirrus Logic (NASDAQ: CRUS) today announced that it has entered into an agreement to acquire Lion Semiconductor, based in California, USA, for $335 million in cash. The acquisition brings unique intellectual property and products for power applications in smartphones, laptops and other devices, and accelerates the growth of the company's high-performance mixed-signal business. Lion Semiconductor is expected to be immediately accretive to GAAP and non-GAAP earnings per share, contributing approximately $60 million in revenue between the closing of the transaction and the end of fiscal 2022.

“The acquisition of Lion Semiconductor furthers our strategy of applying our mixed-signal expertise to new markets and driving growth through innovation in areas such as power,” said John Forsyth, president and CEO of Cirrus Logic. “Lion Semiconductor’s proprietary fast-charging products and strong intellectual property portfolio are expected to contribute meaningfully to revenue growth in the coming years, strengthen Cirrus Logic’s position to pursue exciting new opportunities, and significantly expand our addressable markets.”

“We are excited to become part of the exceptional team and culture at Cirrus Logic, which excels in delivering best-in-class mixed-signal technology to the industry’s most demanding customers,” said Wonyoung Kim, CEO of Lion Semiconductor. “We believe our world-class charging technology and innovative switched capacitor architecture will help put more Cirrus Logic solutions at the heart of the world’s best battery-powered products.”

Lion Semiconductor's switched capacitor architecture enables an excellent wired and wireless fast charging user experience and has been used in many flagship and mid-range smartphones. These solutions are integrated close to the battery, providing higher efficiency and better heat dissipation for the rapidly growing fast charging market. Lion Semiconductor was founded in 2012 and has operations in San Francisco and Seoul, South Korea.

Transaction details:

• Cirrus Logic to Pay $335 Million in Cash

• The transaction is expected to contribute $60 million in revenue by the end of fiscal year 2022

• Gross margins are expected to support corporate margins

• Expected to be immediately accretive to GAAP and non-GAAP earnings per share

• The Boards of Directors of both companies have approved the transaction, which is expected to close within 30 days, subject to customary closing conditions.

About Cirrus Logic

Cirrus Logic is a leader in low-power, high-precision mixed-signal processing solutions, dedicated to creating innovative user experiences for the world's top mobile and consumer applications. Cirrus Logic is headquartered in Austin, Texas, USA, and is recognized worldwide for its award-winning corporate culture.