DALSA to Acquire Image Sensor Unit and Semiconductor Foundry

WATERLOO, Ontario, Jan. 29 -- DALSA Corp. announced it has signed a term sheet for its acquisition of the CCD image sensors business of Royal Philips Electronics. The purchase is expected to include intellectual property, technology, assets, product lines and employees.

DALSA also announced a definitive agreement to acquire controlling interest of the semiconductor foundry facility of Zarlink Semiconductor Inc., in Bromont, Quebec. The foundry will become "DALSA Semiconductor Inc." and will operate as a business unit within and be managed by DALSA. Following the transaction, DALSA will have over 550 employees. Under the terms of the agreement, DALSA will pay $21.6 million in cash for an 80.1 percent ownership stake in DALSA Semiconductor Inc. Zarlink will also receive a 19.9 percent ownership position in DALSA Semiconductor Inc. and will remain a significant customer of the foundry. The boards of both companies have approved the transaction, which is expected to be completed in February 2002.