Skyworks’ $405 Million Acquisition of Avnera

O’Melveny represented Skyworks Solutions, Inc., an analog semiconductor manufacturer, in a definitive agreement to purchase Avnera Corporation, a private fabless semiconductor supplier.

Skyworks Solutions, Inc. (NASDAQ: SWKS) has signed a definitive agreement to purchase Avnera Corporation, a leading developer of Analog System on Chips (ASoCs). Acquisition of Avnera, a private fabless semiconductor supplier, augments Skyworks’ leadership in wireless connectivity by adding ultra-low power analog circuits to enable smart interfaces via acoustic signal processing, sensors and integrated software. Upon consummation of the transaction, Skyworks will expand its addressable market by over $5 billion. Target applications include AI speakers/microphones, virtual assistants, intelligent gaming controllers and vehicle in-dash systems as well as wired/wireless headsets.

At the heart of Avnera’s system solutions are market-specific ASoCs that combine breakthrough audio/voice analog circuits, highly efficient power management and custom hardware accelerators for smart acoustic signal processing/AI features. Avnera’s ASoCs achieve the highest level of integration in the industry and set a new performance watermark from a power consumption and footprint standpoint – all underpinned by more than 100 issued and pending patents. Key Avnera customers include Harman, JBL, Panasonic, Philips, Pioneer, Polk, Samsung, Sennheiser, Sony, Vizio and Yamaha.

Skyworks will pay $405 million in cash to Avnera equity holders at closing with up to an additional $20 million if certain performance targets are exceeded over a 12-month post-closing period. The transaction has been approved by the boards of directors of both Skyworks and Avnera and is anticipated to close by September 2018, subject to customary closing conditions. Excluding any non-recurring acquisition-related charges and amortization of intangibles, Skyworks expects the acquisition to be immediately accretive to diluted earnings per share.

O’Melveny represented Skyworks Solutions with a team including Nikole Kingston (Picture), Chris Del Rosso, Andrew Dolak, Courtney Dyer, Robert Fisher, and Shelly Heyduk, along with counsel Billy Abbott, Courtney Byrd, Brian Kenyon, Bob Nicksin, Philippe Nogues, Tom Oslovar, and David Ribner, and associates Aaron Cha, Isaiah Deporto-Plick, Briana LaBriola, John Sirjord, Katie Tague, Kathryn Turner, and Alex Wilson.

Involved fees earner: Nikole Kingston – O’Melveny & Myers LLP; Shelly Heyduk – O’Melveny & Myers LLP; Tom Oslovar – O’Melveny & Myers LLP; Isaiah Deporto-Plick – O’Melveny & Myers LLP; Katie Tague – O’Melveny & Myers LLP; Kathryn Turner – O’Melveny & Myers LLP; Alexander Wilson – O’Melveny & Myers LLP; Chris Del Rosso – O’Melveny & Myers LLP; Briana LaBriola – O’Melveny & Myers LLP; Andrew Dolak – O’Melveny & Myers LLP; Courtney Dyer – O’Melveny & Myers LLP; Courtney Byrd – O’Melveny & Myers LLP; Philippe Nogues – O’Melveny & Myers LLP; Robert Fisher – O’Melveny & Myers LLP; Billy Abbott – O’Melveny & Myers LLP; Brian Kenyon – O’Melveny & Myers LLP; Bob Nicksin – O’Melveny & Myers LLP; David Ribner – O’Melveny & Myers LLP;

Law Firms: O’Melveny & Myers LLP;

Clients: Skyworks Solutions Inc;