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Texas
Instruments and Integrated Sensor Solutions Enter into Agreement For TI
to Acquire ISS
Transaction
To Strengthen TI's Materials & Controls Business Unit
DALLAS (May 3, 1999) - Texas Instruments (TI) and Integrated Sensor Solutions,
Inc. (ISS) today announced that they have entered into an agreement for
TI to acquire ISS, further strengthening the company's presence in the
high-growth automotive sensors market. The acquisition will provide TI's
Materials & Controls (M&C) business with added expertise and a broadened
product portfolio to complement its leading position in pressure sensors.
The agreement
is for an all-cash tender offer for all outstanding shares of ISS's common
stock at $8.05 per share, or about $62 million.
Integrated
Sensor Solutions designs, manufactures and markets high performance intelligent
sensor products that are used in electronic control systems by customers
in the automotive and industrial markets. Applications include new generation
low emission engines and advanced vehicle stability systems, such as common
rail diesel fuel injection (CRI), gasoline direct injection (GDI) and
vehicle dynamic control (VDC). Their solutions are used by some of the
world's leading automotive suppliers including Robert Bosch GmbH, Cummins
Engine Company, Inc., Honda R&D Co. Ltd., Automotive Controls Corp., Knorr-Bremse
Systems GmbH, Nagano Keiki Co., Ltd., and Michelin North America, Inc.
"The acquisition
of ISS significantly strengthens our ability to serve the high-growth
markets for automotive and industrial sensors," said Tom Wroe, president
of TI's Materials & Controls (M&C) business. "By supporting ISS's strong
customer positions and product portfolio with TI's sensor technologies,
operational excellence and global presence, we expect to achieve major
growth in this key area."
The company
will become part of the Automotive Sensors & Controls group of TI's M&C
business based in Attleboro, Massachusetts. M&C is a market leader in
sensors and controls used in the transportation, appliance, HVAC, industrial/commercial,
and electronic/communication markets.
"The merging
of Integrated Sensor Solutions and M&C provides a unique position of strength
to fully exploit market opportunities," said Manher Naik, President, Chairman
and CEO of Integrated Sensor Solutions. "With TI's global presence, we
will be able to address and support a worldwide customer base."
TI will,
subject to satisfaction of certain conditions, commence the all-cash tender
offer on May 7, 1999, and the tender offer is scheduled to expire at midnight
EDT on June 4, 1999, unless extended. TI intends to acquire the ISS common
stock through a wholly-owned subsidiary of TI. Any shares not purchased
in the tender offer will be acquired for the tender offer price in cash
in a second-step merger.
The boards
of directors of both companies have unanimously approved the acquisition,
and the ISS board of directors has recommended that ISS's stockholders
accept TI's all cash tender offer. Consummation of the acquisition is
contingent upon the tender of a majority of ISS's outstanding common stock
on a fully-diluted basis, antitrust agency approvals in the United States
and Germany and certain other conditions.
Integrated
Sensor Solutions was founded in 1989 and became publicly traded in 1998.
The stock trades under the symbol ISNR (Nasdaq). With locations in San
Jose, California, and Dresden, Germany, the company has approximately
170 employees and had sales of $15.2 million for its fiscal year ending
March 31, 1998, and unaudited sales of $16.8 million for the nine months
ending December 31, 1998.
NOTE TO
EDITORS: TI's Materials & Controls business is a leading supplier of engineered
materials, sensors, and control devices that are used in aircraft, appliance,
automotive, industrial, military, and telecommunications markets. Currently,
the business is combining its traditional electro-mechanical and metallurgical
capabilities with TI's microelectronic skills to capitalize on rapidly
growing electronic opportunities such as sensors, interconnection and
radio frequency identification systems.
Integrated
Sensor Solutions Inc. manufactures and markets high performance, intelligent
sensor products that are used in electronic control systems by customers
in the automotive and industrial markets. The Company's products are application
specific integrated circuits ("ASICs") and integrated sensor devices ("ISDs").
The Company's initial focus on automotive applications has resulted in
its products being designed into a broad range of electronic control systems
such as fuel injection, tire pressure, engine control, air bag, suspension
and brake systems. While continuing its efforts to further penetrate the
automotive market, the Company has leveraged its technology to develop
products that address high volume industrial applications including utility
gas meters, refrigeration, air conditioning and process control systems.
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