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Lattice Semi to acquire Silicon Image for $600 million

Lattice Semiconductor will acquire Silicon Image in an all-cash tender offer of USD 7.30 per share, representing an equity value of approximately USD 600 million.
Darin G. Billerbeck, Lattice Semiconductor’s President and Chief Executive Officer, said, “This is a truly transformative event for both Lattice Semiconductor and Silicon Image. For the first time in the semiconductor industry, a single company will combine the design flexibility and time to market benefits of FPGAs, with the highly integrated, function and cost optimization benefits of ASSP solutions. We are excited to move forward with Silicon Image and confident we will be able to drive higher revenue and earnings growth, through the benefits of better economies of scale and material cost synergies. We expect this transaction to be immediately accretive on a non-GAAP basis.”

The combination of the two companies will allow the combined entity to drive early collaboration during product design and ultimately deliver optimized ASSP solutions.

Lattice also sees revenue expansion opportunities due to an increased market presence and combined product offering, which will result in greater lifetime revenue opportunities.

Camillo Martino, Chief Executive Officer of Silicon Image, commented, “We are excited to move forward with this unique business combination. Lattice’s management team has a strong track record of execution and operational excellence, both critical to the continued expansion of our product portfolio and ability to support our customer’s evolving requirements. Importantly, Lattice shares our commitment to building upon Silicon Image’s rich history of standards creation and the development of new wired and wireless connectivity innovations. This transaction is the culmination of a strategic process conducted under the direction of our board of directors, and represents a significant creation of value for our shareholders.”

Mr. Billerbeck concluded, “Our respective technical capabilities, product portfolios and visions for the future are complementary and will be even more powerful when combined.”

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