Newport Beach-based chipmaker Jazz Technologies Inc.’s $170 million acquisition by Israel’s Tower Semiconductor Ltd. is on track to close next month, the companies said Wednesday.
Federal regulators have signed off on Tower’s Securities and Exchange Commission filing outlining the deal.
That’s cleared the way for Jazz shareholders to vote on the acquistion. That’s slated for Sept. 17.
This week, Jazz plans to mail shareholders terms of the deal for them to vote on.
The sale is likely to go through and end Jazz’s brief run as an independent company.
Jazz got its start as the chip making arm of Rockwell International Corp.’s semiconductor unit, which made chips for modems.
Rockwell spun off the business as Newport Beach-based Conexant Systems Inc. in 1999.
In 2002, Conexant split off its Newport Beach chip factory as Jazz Semiconductor.
Last year, Apple Inc. alums Gil Amelio, Steve Wozniak and Ellen Hancock bought Jazz after raising money from investors in 2006. Amerlio runs the company as chief executive.
Tower Chief Executive Russell Ellwanger is set to take over running Jazz as a subsidiary. He plans to travel between Newport Beach and Tower’s headquarters near Haifa, Israel.
Jazz is set to continue operating under its own name with just a few initial changes under Tower.
In May, Tower said it is paying $40 million plus an additional $129 million in debt for Jazz.
