Headline: Royal Philips Electronics Closes Tender Offer for VLSI Technology
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SUNNYVALE, Calif.--(BUSINESS WIRE)--June 2, 1999--Royal Philips
Electronics (NYSE:PHG) today announced the expiration of its $21.00
per share cash tender offer for all of the outstanding shares of VLSI
Technology, Inc. (NASDAQ:VLSI). The offer expired at 12:00 midnight,
New York City time, on Tuesday, June 1, 1999. All shares validly
tendered and not properly withdrawn prior to the expiration have been
accepted for payment and will be paid promptly. The tender offer was
made through Philips' indirect wholly owned subsidiary, KPE
Acquisition Inc.
In excess of 42.1 million shares were tendered in the offer prior
to its expiration, which when combined with the VLSI shares already
owned by Philips constitutes approximately 91.5% of VLSI's outstanding
shares. The shares tendered include approximately 2.1 million shares
(less than 4.5% of the outstanding) tendered pursuant to Notices of
Guaranteed Delivery. Philips will acquire the remaining shares of VLSI
pursuant to a merger of KPE Acquisition Inc. with and into VLSI, and
VLSI will thereby become an indirect wholly owned subsidiary of
Philips.
Arthur van der Poel, Chairman of Philips Semiconductors, said:
"We are delighted to bring our tender offer to this successful
conclusion and to warmly welcome the VLSI employees to Philips
Semiconductors. Adding VLSI's digital expertise to Philips
Semiconductors, particularly their ASIC design capabilities, will
benefit the customers of both companies, strengthen our position in
the U.S. and create numerous growth opportunities. VLSI has the
technology, know-how and people in place to help further the strategy
of Philips Semiconductors."
VLSI and Philips Semiconductors have complementary operations
with almost no product overlap. VLSI has digital expertise and
capabilities in wireless communications, computer networking and ASICs
(application-specific integrated circuits). Philips Semiconductors has
expertise in wireless, multimedia, automotive and consumer
electronics.
VLSI Technology, Inc. designs and manufactures custom and
semi-custom integrated circuits for leading firms in the wireless
communications, networking, consumer digital entertainment and
advanced computing markets. VLSI is based in San Jose, Calif. with
1998 revenues from continuing operations of $547.8 million, and
approximately 2,200 employees worldwide. Information related to VLSI
Technology is available at VLSI's homepage, www.vlsi.com.
Philips Semiconductors, a subsidiary of Philips Electronics North
America Corporation and an affiliate of Royal Philips Electronics,
headquartered in Eindhoven, The Netherlands, is the eighth largest
semiconductor supplier in the world (according to Dataquest's 1998
ranking by sales). Philips Semiconductors' innovations in digital
audio, video, and mobile technology position the company as a leader
in the consumer, multimedia and wireless communications markets. Sales
offices are located in all major markets around the world and are
supported by systems labs. Additional information on Philips
Semiconductors can be found at www.semiconductors.philips.com.
Royal Philips Electronics of the Netherlands is one of the
world's biggest electronics companies and Europe's largest, with sales
of US$33.9 billion in 1998. It is a global leader in color television
sets, lighting, electric shavers, color picture tubes for televisions
and monitors, and one-chip TV products. Its 233,700 employees in more
than 60 countries are active in the areas of lighting, consumer
electronics, domestic appliances, components, semiconductors, medical
systems, business electronics, and IT services (Origin). Philips is
quoted on the NYSE, London, Frankfurt, Amsterdam and other stock
exchanges. News from Philips is located at www.news.philips.com.
CONTACT: Royal Philips Electronics
Jeremy Cohen
31-20-597-7213
or
Sard Verbinnen & Co
George Sard/David Reno
212/687-8080
or
Philips Semiconductors
Jodi Guilbault
408/991-2332
Jodi.Guilbault@sv.sc.philips.com
www.semiconductors.philips.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS TELECOMMUNICATIONS
BANKING
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