Shareholders of Newport Beach chipmaker Jazz Semiconductor Inc. gave the green light Wednesday to a deal that would allow the struggling company to be bought by Israel’s Tower Semiconductor Ltd.
Jazz’s shares slumped in tandem with the rest of the market. The stock closed down more than 20% on a recent market value of roughly $13 million.
In May, Tower said it was paying $40 million plus an additional $129 million in debt for Jazz.
Last month, federal regulators signed off on Tower’s Securities and Exchange Commission filing outlining the deal.
The sale ends 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. Amelio 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.
