U.S. handset maker Cirrus Logic Inc is to purchase British microchip maker Wolfson Microelectronics for an agreed 291 million pounds ($489 million) to boost its audio division, the two firms said on Tuesday.In a joint statement, the companies said the price per share of 235 pence represented a premium of 75 percent to Wolfson's closing share price on Monday. Cirrus is a supplier to Apple .Wolfson, an Edinburgh-based company which specialises in audio technology, has been hurt in recent months by the dominance of rival Qualcomm in 4G mobile phone technology, resulting in it swinging to an underlying loss in the final quarter of 2013.Wolfson is a supplier for the 3G version of Samsung's Galaxy S4 smartphone but its chips were not in the 4G model of the top-selling handset. It posted first-quarter results on Tuesday showing an underlying operating loss of $4.5 million.
Cirrus Logic, Inc. (Cirrus Logic) develops analog and mixed-signal integrated circuits (IC) for a broad range of consumer and industrial markets. Shares of CRUS traded higher by 1.76% or $0.38/share to $22.01. In the past year, the shares have traded as low as $16.46 and as high as $25.91. On average, 1794520 shares of CRUS exchange hands on a given day and today's volume is recorded at 3269044.
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