The acquisition of Jazz Technologies Inc. located in Orange County by Israel’s Tower Semiconductor Ltd. is expected to close by next month, said both the companies on Wednesday.

Tower Semiconductor Ltd. has signed a deal on May for the acquisition of Jazz Technologies Inc., in order to expand its efforts in the specialty foundry arena.

Newport Beach, Orange County-based Jazz Technologies is the parent company of Jazz Semiconductor, Inc., a leading independent wafer foundry focused on Analog-Intensive Mixed-Signal (AIMS) process technologies. The company’s broad product portfolio includes digital CMOS and specialty technologies, such as RF CMOS, Analog CMOS, Silicon and SiGe BiCMOS, SiGe C-BiCMOS, Power CMOS and High Voltage CMOS.

According to the agreement, Tower will acquire all the outstanding shares of Jazz at an equity value of approximately $40 million and the total value of the transaction, including net debt is approximately $170 million.

The board of directors of both the companies has unanimously approved the agreement. However, the deal is yet to be approved by the Jazz’s shareholders. Jazz plans to mail its shareholders terms of the deal to vote on it.

Tower Semiconductor Ltd. is an independent specialty wafer foundry, which was established in 1993. The company manufactures integrated circuits with geometries ranging from 1.0 to 0.13-micron. It also provides complementary technical services  & design support and also offers advanced mixed-signal & RF-CMOS, Power Management, CMOS image-sensor and non-volatile memory technologies.

This entry was posted on Wednesday, August 20th, 2008 at 6:43 am and is filed under Venture Capital News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.