Investor Group to Acquire Zilog
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Semiconductor maker Zilog Inc. on Monday accepted a $527-million buyout from an investment group led by Texas financier David Bonderman.
The agreement calls for Texas Pacific Group, a Fort Worth-based partnership that includes Bonderman and several other former advisors to the Bass family, to acquire a 93.3% stake in Campbell-based Zilog, including 90% of the voting shares.
The purchase is the third high-tech company that Texas Pacific Group has bought in the last year and provides needed capital to Zilog, which has been battered by weak demand for its computer chips.
In August, Texas Pacific bought Paradyne Corp., which makes products to help access computer networks, and GlobeSpan Technologies Inc. from Lucent Technologies.
Zilog shares rose $1.81 to close at $24.19 on the New York Stock Exchange.
The transaction is intended to be treated as a recapitalization for accounting purposes, Texas Pacific Group said. It’s expected to be completed in the fourth quarter.
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