Creative Acquires Silicon Engineering
SINGAPORE - May 23, 1998 - Creative Technology Ltd.
(Nasdaq: CREAF), the world's leading provider of multimedia
technology for the personal computer, today announced that, on
May 22, 1998, it acquired Silicon Engineering, Inc. of Scotts
Valley, California, a key innovator in the design and
development of integrated circuits for the multimedia, storage
and communications markets.
"This strategic acquisition will enable Creative to further
differentiate its products through a broad range of proprietary
integrated circuit designs and to push the envelope of deep
sub-micron technology," said Sim Wong Hoo, chairman and
chief executive officer of Creative. "Silicon Engineering's key
strengths are in developing integrated circuits that provide the
ability to combine analog and digital functions and offer
increased performance with low power consumption. Silicon
Engineering enhances our arsenal of cutting-edge technologies
thereby allowing us to continue to drive the advanced
multimedia marketplace."
"We are extremely pleased to be joining forces with Creative,"
said Rich Hansen, president and co-founder of Silicon
Engineering. "This merger enhances Creative's position in the
multimedia market and increases its ability to deliver its
technology to the marketplace."
In acquiring privately-held Silicon Engineering, Creative has
issued 921,271 of its ordinary shares, credited as fully paid, to
the holders of the Silicon Engineering shares in exchange for all
the shares of Silicon Engineering. Up to an additional 102,314
shares of Creative's ordinary shares may be issued to the holders
of Silicon Engineering upon expiration of an escrow period.
The consideration of approximately US$22.5 million (or
approximately US$4.94 for each Silicon Engineering share) and
the issue price of US$22 for each Creative share have been
determined on an arms' length basis. The new Creative shares
constitute approximately one percent of the enlarged issued
share capital of Creative.
Creative expects to account for this acquisition under the pooling
of interest accounting rules. Creative currently contemplates that
Silicon Engineering will continue its business at its Scotts Valley
location as a California corporation and a wholly-owned
subsidiary of Creative. The acquisition is not expected to have a
material impact, for the current year, on Creative's earnings per
share or on Creative Group's net tangible assets.
None of the Directors or substantial shareholders of Creative has
any interest, direct or indirect, in the acquisition.
Creative Technology Ltd. develops, manufactures and markets a
wide array of advanced multimedia solutions for the PC,
entertainment, education, music and productivity tools markets.
Creative's products are marketed through both the OEM and
retail channels under a variety of trademarks, including the
"Blaster" family name. Sound Blasterr has become the
multimedia industry's de facto audio standard. Sound Blaster is
an audio platform consisting of a sound card or chipset, software
drivers and bundled software applications that enable PCs to
produce high quality audio. Creative's corporate headquarters
and primary manufacturing facilities are based in Singapore, with
sales, distribution and research and development being carried
out through an extensive, global network of subsidiaries located
in North America, Europe, Asia and Africa.
CONTACT INFORMATION:
Creative Technology Ltd
Mary Rachel Yee
Tel (65) 895 4775
mary@ctlsg.creaf.com |
