Zarlink acquires Austin-based Legerity

Zarlink Semiconductor Inc has entered into an agreement to purchase privately held Legerity Holdings Inc, Austin TX, a developer of voice integrated circuits (ICs) for the carrier, enterprise and residential equipment gateway markets. The US$134.5-million acquisition will be financed through cash reserves and a bridge facility of up to $50 million. The acquisition of Legerity — a spin-off of Advanced Micro Devices Inc — will boost combined revenues to $255-million, based on Legerity's $113 million in sales for 2006. Zarlink will create a combined network communications product portfolio headed by Legerity CEO Hank Perret, who will report to Zarlink president and CEO Kirk Mandy. Zarlink has a workforce of nearly 700, compared to just over 200 at Legerity. Zarlink produces semiconductors for wireless and optical applications and medical products such as hearing aids. Legerity is considered a market leader in ICs for high-voltage, analog/mixed signal semiconductor and software technologies….