Jazz Technologies Inc., a Newport Beach fabricator of analog semiconductors, is selling to Tower
Semiconductor Ltd., an Israeli wafer foundry, for $169 million.
In February, Jazz’s managers announced plans to seek a buyer for the company, which has struggled to make a profit. Jazz reported a net loss of $31.9 million in 2007 on revenue of $182.1 million. Revenue in the first quarter of 2008 more than doubled to $50.8 million, reducing Jazz’s net loss to $4 million, down from a loss of $11.6 million a year earlier.
A spinoff of Conexant Systems Inc., Jazz was purchased in 2007 in a $262 million deal, according to company filings.
The purchaser was a so-called “blank check” company named Acquicor Technology Inc., which raised capital on the stock market to buy high tech companies. The founders were a team of former executives from Apple Computer: former Apple chief executive Gilbert F. Amelio; Ellen M. Hancock, who was an executive at Apple and headed the now-defunct Exodus Communications; and Apple co-founder Steve Wozniak.
The transaction is expected to be completed in the second half of this year. The announcement did not say what, if any, jobs will be added or cut at the Newport Beach foundry.
“We are excited about the potential of joining together with Tower and believe Jazz’s shareholders, customers, employees and other stakeholders will benefit from the enhanced growth, profitability and cash flow prospects of the combined company,” said Paul Pittman, chief financial officer of Jazz.
To see the news release, CLICK HERE.
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