Allegro MicroSystems, Inc. completed the acquisition of Crocus Technology International Corp. for approximately $410 million.
October 29, 2023
Share
Allegro MicroSystems, Inc. (NasdaqGS:ALGM) signed a definitive agreement to acquire Crocus Technology International Corp. for $420 million on August 7, 2023. The planned acquisition of Crocus will be funded with a combination of cash on hand and a new debt issuance. The transaction has been approved by the board of directors of both companies. Subject to customary regulatory approvals and closing conditions, the transaction is expected to close by the end of calendar year 2023. Thomas J. Malone, Frank J. Azzopardi, Kyoko Takahashi Lin, Michael Mollerus, Paul D. Marquardt and Cheryl Cha Cheryl Chan of Davis Polk & Wardwell LLP served as legal advisor to Allegro Microsystems. Brad Finkelstein of Crocus Technology International Corp. served as legal advisor to Crocus Technology. Barclays Capital Inc. acted as financial advisor to Crocus Technology International Corp. Credit Suisse (USA), Inc. acted as financial advisor to Allegro MicroSystems, Inc.
Allegro MicroSystems, Inc. (NasdaqGS:ALGM) completed the acquisition of Crocus Technology International Corp. for approximately $410 million on October 30, 2023. The transaction is subject to a working capital adjustment. The acquisition of Crocus is expected to complement and accelerate the Company?s tunnel magnetoresistance sensors roadmap and strengthen its position in the magnetic sensing market. The acquisition was funded by a combination of cash on hand and a new seven-year $250 million senior secured term loan.
Allegro MicroSystems, Inc. is a global designer, developer, fabless manufacturer, and marketer of sensor integrated circuits (ICs) and application-specific analog power ICs. The Company is a supplier of magnetic sensor IC solutions in the automotive market. Its sensor ICs enable its customers to precisely measure motion, speed, position and current, while its power ICs include high-temperature and high-voltage capable motor drivers, power management ICs, light-emitting diode driver ICs and isolated gate drivers. Its diverse product portfolio provides solutions for the electrification of vehicles, automotive advanced driver assistance systems (ADAS) safety features, automation for Industry 4.0 and power saving technologies for data centers and green energy applications. The Company, through its subsidiary, Crocus Technology, Inc. offers advanced Tunnel Magnetoresistance (TMR) sensor technology solutions to designers and manufacturers of industrial, automotive and consumer electronics.