Integrated Device Pays $64 Million To Acquire Leased Property
Tuesday November 12, 11:31 am ET
WASHINGTON -(Dow Jones)- Integrated Device Technology Inc. (NasdaqNM:IDTI - News) said it terminated a synthetic lease and acquired the leased property, plant and equipment for about $64 million, according to its quarterly report filed Tuesday with the Securities and Exchange Commission.
The purchase price was funded primarily by the $50.6 million lease deposit. Integrated Device Technology said it no longer has any property, plant or equipment subject to synthetic leases, under which an unrelated third-party funds 100% of the costs of the property and leases the asset back to the company.
The lease, related to its Hillsboro, Ore., manufacturing site, would have expired in May 2005.
Integrated Device Technology also said in the filing that it expects to eliminate about 70 additional jobs during the second half of 2003. These employees are currently engaged in shutdown and disposal activities at the company's Salinas, Calif., manufacturing facility, which was recently phased out and its work transferred to the Hillsboro plant.
During the first two quarters of fiscal 2003, about 190 Salinas-based positions were eliminated.
Also in Integrated Device's Form 10-Q, the company said it paid $10 million to acquire Solidum Systems, a privately held provider of classification and content inspection processing solutions.
The purchase price excludes contingent consideration and assumed debt, the filing said.
Integrated Device announced the completion of the acquisition on Oct. 8, but financial details weren't disclosed at that time.
The company said its financial results for the third quarter will account for this transaction, possibly including a charge for a portion of the purchase price as acquired in-process research and development.
The company said the acquisition is expected to complement its packet- processing product offerings.
-By Carrie DeLeon, Dow Jones Corporate Filings Alert; 202-628-7663 |
