LONDON (AP) _ British semiconductor designer ARM Holdings PLC said Monday it has agreed to buy U.S. technology firm Artisan Components Inc. for $913 million in cash and stock to boost its product range and reach more customers.
The deal will combine ARM's microprocessor technology, used in low-power portable devices, with Artisan's integrated circuits components.
``Artisan has a proven sales channel which will be highly complementary with the ARM sales channel,'' ARM Chairman Sir Robin Saxby said in a statement. ``The combined entity will be able to reach more customers with a broader product portfolio to better serve our combined user community.''
Under the terms of the agreement, Artisan stockholders will receive $9.60 in cash and ARM stock equal to 4.41 ARM U.S. shares for each Artisan share.
Based on closing prices for ARM's U.S. shares on Friday, the implied value is $33.89 per Artisan share, or a total of $913 million, ARM said. The offer was 42 percent more than Artisan's closing price on Friday.
The cash portion will be funded using ARM's existing cash resources, the company said.
Artisan, based in Sunnyvale, Calif., is a provider of Internet Protocol components for the design and manufacture of complex integrated circuits.
ARM, based in Cambridge, England, specializes in developing and licensing microprocessor technology for low-power portable devices such as mobile phones and handheld computers.
ARM said the combined company would deliver one of the industry's broadest portfolios of system-on-chip intellectual property and provide a complementary sales channel combining ARM's more than 130 silicon manufacturers and Artisan's more than 2,000 customer companies.
Artisan chairman Lucio L. Lanza and chief executive Mark R. Templeton will join ARM's board once the deal is complete, expected in the fourth quarter of 2004. ARM's Warren East will continue as chief executive.