Conexant Systems Discloses Price Tag for Applied Telecom

Conexant Systems Inc., which makes semiconductors for the telecommunications market, disclosed that it paid $15.1 million in cash and stock for its April 23 acquisition of Applied Telecom Inc. of Lisle, Ill. The total purchase price consisted of $4.3 million in cash, 121,000 shares of Conexant common stock and certain options to purchase Conexant common stock, according to the Newport Beach company’s annual report, filed with the Securities and Exchange Commission. In addition, shareholders and option holders of Applied Telecom could receive an additional $5.7 million, payable in the form of shares of common stock and stock options, if certain performance and technology goals are achieved. Separately, Conexant said in the SEC filing that the total value of its previously announced acquisition of Philsar Semiconductor Inc. could exceed $200 million, and that it expects to record a charge possibly exceeding $200 million for goodwill and intangible assets in connection with the acquisition. Conexant agreed in April to acquire the Ottawa, Ont., semiconductor start-up for about 2.7 million to 3 million shares of Conexant stock, depending on the closing market price of the stock for an agreed-upon period prior to the closing. Conexant expects to close the deal by the end of June.