Shanhai Capital has revealed plans to acquire Analogix Semiconductor in a deal worth over $500 million.
Analogix Semiconductor and Beijing Shanhai Capital Management announced the merger on Friday. In a press release, the companies said a consortium of investors, led by Beijing, China-based Shanhai Capital, will purchase all outstanding shares of Analogix for over $500 million.
Analogix Semiconductor, headquartered in Santa Clara, California, creates high-speed, mixed-signal semiconductor integrated circuits (ICs) for use in mobile devices, virtual reality products, and other electronics. Analogix components are used in devices from brands including Apple, Samsung, Google, and LG, and the company is known for developing semiconductors suitable for the DisplayPort standard, such as the SlimPort product line.
It is hoped the agreement will "accelerate growth," "fuel innovation," and create opportunities to expand into new markets.
As part of the deal, China IC Fund will also join Shanhai Capital's fund as a limited partner.
Dr. Kewei Yang, Analogix Semiconductor's chairman and CEO commented:
"We are very happy to have reached this agreement, which provides significant value to our shareholders. The financial support of Shanhai Capital propels our growth while maintaining the direction, organization, and determination to serve our customers. I am especially excited that we all share the same vision of building Analogix into a much broader and more capable global semiconductor leader."
The deal is subject to regulatory approval and is expected to close in late 2016.
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