Story posted at 2:30 p.m. EST/11:30 a.m. PST, 3/2/98
Unitrode, Benchmarq merging
MERRIMACK, N.H. -- In a move to push deeper into portable power markets, Unitrode Corp. here and Dallas-based Benchmarq Microelectronics Inc. announced a merger agreement, valued at about $135 million.
According to Unitrode, the merger will create a combined company--to be called UTR Benchmarq--with annual revenues of about $222 million from a broad line of analog and mixed-signal ICs, including products aimed at power and battery management applications.
In a separate announcement today, Unitrode reported net sales were up 33% and net income rose 46% in the company's fiscal 1998 year, ended Jan. 31. The company said sales totaled $177.6 million compared to $133.5 million in the previous fiscal year, while its profit increased to $30.2 million vs. $20.7 million last year. Nine-year-old
Benchmarq in January reported 1997 sales of $44.4 million and a net income of $6.7 million compared to $40.2 million and a profit of $7.1
million in 1996.
"The combination of Unitrode and Benchmarq will create a strong market presence in power management and battery management ICs and modules," declared Robert J. Richardson, who is currently president and chief executive officer of Unitrode. Once the merger is completed,
Richardson will become chairman and CEO of the combined companies.
"Each company has a well-established competence in complementary technologies which will allow the combined companies to accelerate the
development of proprietary products for the rapidly growing portable power segment of computer and communications markets," Richardson added.
Under the agreement, shareholders of Benchmarq will receive one share of Unitrode common stock for each share of Benchmarq stock, subject to
adjustment under certain conditions. Based on Unitrode stock's stock price in recent days, the transaction is valued at about $135 million,
according to the company.
Benchmarq president and CEO Alan R. Schuele will assume the position of president and CEO after the merger is completed. Unitrode chairman
Robert L. Gable and Benchmarq chairman Derrell C. Coker both will step down from their positions after the transaction is completed.
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