Semtech Corp. Acquires USAR in Stock Deal

Semtech Corp. in Newbury Park has acquired USAR Systems, a New York-based provider of embedded devices for advanced notebook and palmtop computer electronics.

Semtech--a supplier of semiconductors used in cell phones and communication, computer, test and measurement, video and industrial equipment--announced that it has exchanged 495,000 shares of its common stock for all outstanding shares of common stock of USAR Systems. The transaction will not require restatement of prior period results of Semtech, which said it would incur a one-time cost of about $500,000 in the fourth quarter of fiscal year 2000 to cover acquisition-related costs.

USAR, a privately held company founded in 1990, was recognized by Inc. Magazine as one of the fastest-growing private companies in the United States in 1998. As part of the acquisition, USAR will become a subsidiary of Semtech and will continue to maintain its current operations and strategic relationships. USAR’s products have been adopted by companies such as Compaq Computer, Hewlett Packard, Philips, General Electric and Sun Microsystems.

“This critically important acquisition is a key step in Semtech’s ongoing strategy of driving the fastest-growing emerging market segments with high-value integrated solutions,” said Jack Poe, Semtech chairman and chief executive.