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Jazz Technologies acquired by Tower Semiconductor for $169 million
By Lisa Kerner
Charlotte, N.C., Sept. 19 - Tower Semiconductor Ltd. completed its acquisition of Jazz Technologies, Inc., it was announced on Friday.
Jazz and its subsidiary, Jazz Semiconductor, Inc., are now wholly owned subsidiaries of Tower.
Tower said Jazz Semiconductor will be known as Jazz Semiconductor, Inc., a Tower Group Company.
It was previously reported that Tower agreed to acquire Jazz in a stock-for-stock deal valued at $169 million, including net debt.
Each outstanding share of Jazz common stock was converted into the right to receive 1.8 Tower ordinary shares.
In addition, each outstanding warrant and outstanding option to acquire Jazz common stock became exercisable for 1.8 Tower ordinary shares, and Jazz's convertible notes became convertible into Tower ordinary shares based on the same exchange ratio.
Jazz's common stock, warrants and units will no longer be traded on the American Stock Exchange.
Russell Ellwanger, Tower's chief executive officer, has been named chairman of the board of directors of Jazz and will oversee the integration of the two companies.
Jazz chairman and CEO Gilbert F. Amelio retired as an officer and director of the company upon the merger's close. Amelio will act as a special adviser to Tower's board of directors.
The combined company is expected to have trailing-12-month revenues of approximately $440 million. Tower said the merger creates "significant cross-selling" opportunities and provides one of the industry's broadest portfolios of specialty process technologies.
Tower is a Migdal Haemek, Israel, independent specialty wafer foundry.
Jazz is the parent company of Jazz Semiconductor, an independent wafer foundry based in Newport Beach, Calif.
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