Communications chip firm Integrated Device Technology (IDT) is acquiring Integrated Circuit Systems, a chip manufacturer specialising in clock and timing devices.

Both companies' boards have agreed the deal, accounted for as a merger, which will see ICS shareholders receive IDT stock and cash. The deal is worth a total of $1.7bn.

"IDT has established a solid reputation for developing vital semiconductor solutions targeting various communications infrastructure applications, including wireline, wireless and enterprise," said Greg Lang, president and chief executive officer at IDT.

IDT's Greg Lang

"Likewise, ICS has excelled in providing timing technology to consumer, PC and DIMM customers. Combining our resources will allow us to pursue these opportunities more effectively than we could as separate entities."

The acquisition will add to IDT's earnings in 2007, Lang said. For the year to the end of March, 2005, the combined firm would have had revenue of around $645m. IDT's individual revenue for the year was $391m.

IDT's Lang will serve as president and chief executive officer of the combined company, with Hock Tan of ICS becoming chairman of the board of the combined company.

www.idt.com
www.icst.com