JANUARY 22--DALSA Corporation (Waterloo, Ontario, Canada; www.dalsa.com) has announced a definitive agreement to acquire controlling interest of the semiconductor foundry facility of Zarlink Semiconductor Inc., located in Bromont, Quebec. The acquisition is a major step in DALSA's long-term strategy of specialty semiconductor technology research, development, and manufacturing.
The Bromont foundry will be renamed DALSA Semiconductor Inc., will be managed by DALSA Corp., and will operate as a business unit within DALSA Corp., which will provide segmented financial statements for DALSA Semiconductor in financial communications once the transaction has been completed. Following the transaction, DALSA will have more than 550 employees.
Under the terms of the agreement, DALSA will pay $21.6 million in cash for an 80.1% ownership stake in DALSA Semiconductor Inc. Zarlink will also receive a 19.9% ownership position in DALSA Semiconductor Inc. and remain a significant customer of the foundry. The board of directors of both companies have approved the transaction. Completion of the transaction is subject to customary closing conditions; the transaction is expected to be completed in February 2002.
