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Analog Devices to sell microphone product line to InvenSense

Analog Devices (ADI) announced that it has signed a definitive agreement to sell the assets of its microphone product line to InvenSense (INVN). InvenSense will acquire the assets related to analog and digital output microphones, as well as certain support operations, for $100M in cash. These microphones were primarily used in consumer applications and are expected to represent less than 1% of ADI’s total revenue in the fourth quarter, which ends November 2. Pursuant to the agreement potential additional amounts will be payable to ADI upon achievement over twelve months of certain revenue milestones by InvenSense. The boards of directors of both companies have approved the transaction, which is expected to close by the end of October, following the satisfaction of customary closing conditions. Tax assessments and any additional closing costs will reduce the net amount of proceeds received by ADI from the transaction.