Spreadtrum to Be Acquired by Tsinghua Unigroup in $1.78 Billion Merger
Published on: 12th Jul 2013
By: Ian Mansfield
Chinese fabless semiconductor vendor Spreadtrum Communications has announced an agreed merger with Tsinghua Unigroup a subsidiary company owned by Tsinghua University.
The merger values Spreadtrum's equity at approximately USD1.78 billion, on a fully diluted basis. The transaction is subject to approval by the shareholders of Spreadtrum, and antitrust and other regulatory approvals, and is not subject to any financing condition.
Spreadtrum's Board of Directors unanimously approved the merger agreement and is recommending that the shareholders vote to approve the merger agreement.
With annual revenues of approximately USD720 million as of 2012, Spreadtrum is a fabless semiconductor company that develops mobile chipset platforms for smartphones, feature phones and other consumer electronics products.
"We believe Spreadtrum and Tsinghua Unigroup will supplement each other and create enormous synergies in China and abroad," commented Mr. Zhao Weiguo, Chairman and Chief Executive Officer of Tsinghua Unigroup. He continued, "Spreadtrum's capable and talented management team will be encouraged to continue their strong performance and innovative corporate culture, while Tsinghua Unigroup is in the unique position to offer unique expertise in consumer products, protection and support from a vast IP portfolio, and unique access to important capital markets in China."