Semtech Completes Divestiture of High Reliability Discrete Diodes and Assemblies

Rhea-AI Summary

Semtech Corporation (NASDAQ: SMTC) has successfully divested its high reliability discrete diodes and assemblies business to Micross Components, Inc. for $30 million in cash. This unit generated approximately $14 million in revenue during fiscal year 2022. The divestiture aligns with Semtech's strategy to exit non-core businesses that do not support its Smarter Planet initiatives. Micross will retain all employees from the acquired business, ensuring continuity. Semtech plans to discuss further details regarding this transaction in its upcoming Q1 fiscal year 2023 earnings call.

Positive

• Completed divestiture of non-core business for $30 million.
• Divestiture aligns with strategy to focus on core operations.
• Micross will retain all employees, supporting business continuity.

Negative

• None.

CAMARILLO, Calif.--(BUSINESS WIRE)-- Semtech Corporation (Nasdaq: SMTC), a leading global supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, announced today it has completed the divestiture of its high reliability discrete diodes and assemblies business to Micross Components, Inc. for $30 million in an all-cash transaction. Fiscal year 2022 revenue for this business was approximately $14 million. All employees will be retained by Micross Components and continue to support the future of the business. Additional details regarding the impact of this transaction will be discussed in Semtech’s Q1 fiscal year 2023 earnings call.

Mohan Maheswaran, Semtech’s president and chief executive officer, stated, “The divestiture of our legacy high reliability discrete diode and assemblies business is consistent with our practice to exit non-strategic businesses that do not align with our Smarter Planet initiatives. We believe that this mostly defense and space business will fit well with the current Micross portfolio and wish the teams continued success with the profitable business we built together.”

This transaction was supported by KPMG Corporate Finance LLC, O’Melveny & Myers LLP and Pérez Correa, González y Asociados, S.C.

About Semtech

Semtech Corporation is a leading global supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms for infrastructure, high-end consumer and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The Company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC. For more information, visit www.semtech.com.

About Micross

Micross is the most complete provider of advanced microelectronic services and component, die and wafer solutions. With the broadest authorized access to die & wafer suppliers, and the most comprehensive advanced packaging, assembly, modification and test capabilities, Micross is uniquely positioned to provide unparalleled high-reliability solutions from bare die, to fully packaged devices, to complete program lifecycle sustainment. For more than 40 years, Micross has been a trusted source for the aerospace, defense, space, medical, energy, industrial, and other markets. For more information about Micross, please visit www.micross.com.

Forward-Looking and Cautionary Statements

All statements contained herein that are not statements of historical fact, including statements that use the words “will,” “believe,” “designed to,” or other similar words or expressions, that describe Semtech Corporation’s or its management’s future plans, objectives or goals are “forward-looking statements” and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Semtech Corporation to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the uncertainty surrounding the impact and duration of supply chain constraints and any associated disruptions; the uncertainty surrounding the impact and duration of the COVID-19 pandemic; export restrictions and laws affecting Semtech Corporation’s trade and investments including with respect to Huawei and certain of its affiliates and other entities identified by the U.S. government, and tariffs or the occurrence of trade wars; worldwide economic and political disruptions as a result of the current conflict between Russia and Ukraine; competitive changes in the marketplace including, but not limited to, the pace of growth or adoption rates of applicable products or technologies; downturns in the business cycle; and the additional risk factors set forth in Semtech Corporation’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (www.sec.gov) on March 16, 2022 as such risk factors may be updated, amended or superseded from time to time by subsequent reports that Semtech Corporation files with the Securities and Exchange Commission. Semtech Corporation assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.

Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its affiliates.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20220503006221/en/

Julie McGee

Semtech Corporation

(805) 480-2004

webir@semtech.com

Source: Semtech Corporation

FAQ

What business did Semtech divest in 2023?

Semtech divested its high reliability discrete diodes and assemblies business.

How much did Semtech receive from the divestiture?

Semtech received $30 million in an all-cash transaction.

What was the revenue of the divested business in fiscal year 2022?

The divested business generated approximately $14 million in revenue during fiscal year 2022.

Why did Semtech decide to divest this business?

The divestiture is part of Semtech's strategy to exit non-strategic businesses that do not align with its Smarter Planet initiatives.

When will Semtech provide more information about the divestiture?

Semtech plans to discuss additional details in its Q1 fiscal year 2023 earnings call.