Philips to Acquire VLSI &nTechnolgoy

Staff -- Semiconductor International, 6/1/1999

Royal Philips Electronics (Eindhoven, Netherlands) and VLSI Technology Inc. (VLSI, San Jose, Calif.) have signed a definitive merger agreement under which Philips will acquire all VLSI shares for $21 per share in cash. VLSI will become a part of Philips Semiconductors, a division of Royal Philips Electronics.

VLSI's Board of Directors has voted unanimously to approve the definitive merger agreement and to recommend that VLSI stockholders accept Philips' amended cash tender offer.

Arthur van der Poel, chairman of Philips Semiconductors, said, "VLSI has exactly 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.

Alfred J. Stein, chairman and chief executive officer of VLSI, said, "We are very pleased that the strategic review process in which we have been engaged has resulted in an agreement that is good for our customers, good for our business partners, good for our employees and, above all, good for our stockholders."