Hillsboro’s Lattice Semiconductor pays $600M for Silicon Image

The deal marks the most expensive acquisition an Oregon company has made since 2007.

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Lattice Semiconductor purchased a California-based imaging company for $600 million, the Hillsboro group announced on Tuesday morning.

The deal marks the most expensive acquisition an Oregon company has made since 2007.

Andy Giegerich of the Portland Business Journal explained the motives for the deal:

Lattice, which makes programmable chips, said the arrangement means the entities can “drive early collaboration during product design and ultimately deliver optimized ( application-specific standard product) solutions.” The company will also sport a solid IP portfolio and expects to be “immediately accretive on a non-GAAP basis” because of improvements to its expense and supply chain operations.

“This is a truly transformative event for both Lattice Semiconductor and Silicon Image,”Darin Billerbeck, Lattice Semiconductor’s president and CEO, said in a release. “For the first time in the semiconductor industry, a single company will combine the design flexibility and time to market benefits of ( field-programmable gate arrays), with the highly integrated, function and cost optimization benefits of ASSP solutions.

OregonLive.com reported on the details of the acquisition and its effect on the market:

The deal thrilled investors: Lattice shares jumped more than 10 percent to $7.26 despite an abysmal day for the markets. Silicon Image jumped 23 percent.

Lattice, with a market cap of just under $800 million, will have to borrow substantially to complete the deal. The company had around $260 million in cash and equivalents at the end of September, its most recent reporting date. Lattice said it had received a financing commitment of $350 million from Jefferies Finance to help fund the deal.


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