A company setup by Gil Amelio and other former Apple Computer Inc. executives to acquire a technology company has found one, and a big one at that: Newport Beach chip plant operator Jazz Semiconductor Inc.
Newport Beach’s Acquicor Technology Inc., which raised $173 million in a public offering earlier this year, said Tuesday it’s buying Jazz, which recently filed to do its own public stock offering.
Acquicor is paying $260 million in cash for Jazz. The deal could include future contingency payments.
The deal is being funded with proceeds from Acquicor’s offering and financing from Wachovia Corp.
Jazz’s selling shareholders have agreed to provide up to $80 million of financing, if necessary.
The companies expect to close the sale in the first quarter.
The deal represents a full circle for Amelio. Earlier in Amelio’s career, he ran what what became Newport Beach-based Conexant Systems Inc.
Jazz is Conexant’s former chip factory that broke off in 2002.
Amelio also ran Santa Clara-based National Semiconductor Corp. before becoming Apple’s short-lived chief executive in 1996.
He was ousted by Apple’s board in little more than a year as Steve Jobs retook the reins.
Acquicor’s other investors include Apple cofounder Steve Wozniak and Ellen Hancock, Apple’s technology chief under Amelio.
The Apple alums got together to form a “blank check” company that raised money with the intention of buying a technology company.
The deal ends Jazz’s own on-again, off-again bid to go public.
In May, Jazz filed plans to raise $105 million in a public offering.
Two years earlier, Jazz had hoped to raise $150 million in an offering that never came about.
Washington, D.C.-based private equity investor Carlyle Group owns about half of Jazz. It acquired the stake at the time of its split from Conexant.
Conexant, as part of its stake in Jazz, is set to receive about $100 million in cash.
The chipmaker, which makes chips under contract from Conexant and other customers, counts yearly sales of $200 million. Jazz lost $11.5 million last year.
