Texan firm Cirrus Logic has its eyes on Wolfson's engineers and market reach
Edinburgh microchip and audio firm Wolfson is set to be gobbled up by US giant Cirrus Logic after the firms announced proposed terms for a surprise £291m deal.
The Murrayfield-based Edinburgh University spin-out, which works alongside major tech manufacturers including Samsung, has suffered headwinds as it seeks to develop the next generation of microphones and audio hubs regarded as key components for smartphone and tablet manufacturers.
But Cirrus’ bid comes at a 75% premium to the Wolfson share price, as the American seeks to become a global leader in the technology.
The Texan suitor which has a turnover of $714m said it would retain a “key” development base in the Scottish capital, but make back-office and duplication savings of around £7m inside 12 months.
Wolfson booked a pre-tax loss of $20.3m on annual turnover of $179.4m last year, blaming quicker-than-anticipated global take-up of 4G technology for softer-than-expected trading in its 3G markets.
Investors accounting for a minimum of 75% of the issued stock of Wolfson must back the sale by the end of June if the deal is to go ahead.
