Date: 25/01/2012

Semtech to acquire Canada based Gennum

Semtech Corporation and Gennum Corporation have entered into a definitive arrangement agreement ("Arrangement Agreement") for Semtech to acquire all of the outstanding shares of Gennum for a total consideration of approximately CDN$500 million (approximately US$494 million based on the exchange rate on January 20, 2012 of CDN$0.9868 to US $1.00).

Semtech says it's going to leverage the Gennum acquisition to provide differentiated high-speed voice, video and data transmission products.

"We are very excited with the acquisition of Gennum Corporation," stated Mohan Maheswaran, President and Chief Executive Officer of Semtech. "We believe Gennum's unique signal integrity solutions and highly differentiated 1 Gbps to 25 Gbps optical products combined with Semtech's leading 40 Gbps and 100 Gbps SerDes portfolio will deliver one of the industry's most complete and robust portfolios to the communications infrastructure, data communications and enterprise computing segments. Additionally, Gennum's strong position in video broadcast and the emerging HD video surveillance market broadens and further diversifies Semtech's portfolio of high-performance analog semiconductors targeted at fast growing markets."

"We are delighted to join Semtech Corporation, a company with a rich history of great engineering innovation and a strong position in several attractive high-growth markets. After a comprehensive review of Gennum's strategic options, we are convinced that this is the best avenue to unlock the underlying value for shareholders that has been created by the Gennum team," said Franz J. Fink, President and Chief Executive Officer of Gennum. "Our employees have been instrumental in building Gennum and will remain a critical component of the combined company as we move forward in the next chapter of our development. Together, Gennum and Semtech will form a stronger company, capable of accelerating growth beyond what would have been possible as separate entities."


Semtech estimates that the acquisition will result in at least $15 million in annual synergies, which Semtech expects will be achieved in full in Semtech's fiscal year 2014.

Under the terms of the Arrangement Agreement, upon closing of the proposed transaction, shareholders of Gennum ("Gennum Shareholders") will receive CDN$13.55 in cash for each common share of Gennum held. The proposed transaction will be completed through a plan of arrangement under the provisions of the Ontario Business Corporations Act.