SanDisk Corp. on Thursday (Oct. 20) entered the emerging three-dimensional chip space by acquiring Matrix Semiconductor Inc. for $238 million.
Matrix (Santa Clara, Calif.) has been developing and supplying 3D-based one-time programmable chip technology since its inception in 1998. The technology is used for storage applications that do not require multiple rewrites. It is based on multiple layers of antifuse-based one-time programmable ROM.
“Use of the Matrix 3D memory extends beyond video games and hopefully will play an important role in content distribution such as incorporation in our recently launched Gruvi cards for secure distribution of premium music titles and other preloaded content in handsets," said Eli Harari, CEO of SanDisk, in a statement.
The acquisition consideration will be approximately $250 million, consisting of approximately $238 million of newly issued SanDisk shares and equity incentives and approximately $12 million of cash. The closing of the acquisition is subject to regulatory approval and the satisfaction of standard conditions. The parties expect to complete the acquisition by the end of 2005.
SanDisk, a supplier of flash storage card products, said third quarter revenues increased 45 percent on a year-over-year basis to a record $590 million and increased 15 percent compared to the second quarter of 2005.
Third quarter net income was $107.5 million compared to $54.1 million in the third quarter of 2004 and $70.5 million in the second quarter of 2005. Fully diluted earnings per share was $0.55, up 90 percent on a year-over-year basis and up 49 percent compared to the second quarter of 2005.