Dallas, Texas 07/07/2015 (Financialstrend) – Audience Inc (NASDAQ:ADNC) will from now on operate as a subsidiary of Knowles after the market leader, and global supplier of advanced micro acoustic solutions confirmed its acquisition. The acquisition is a big addition for Knowles Corp (NYSE:KN) that plans to use it to expand its intelligent audio and signal processing solutions. The merger also means Audience will no longer trade on the NASDAQ stock exchange.
Knowles Plans For Audience
Audience Inc (NASDAQ:ADNC) strong engineering team should be a great addition for Knowles that is looking to be the dominant player in the production of micro-acoustic solutions as well as specialty components. Audience robust patent portfolio should also help Knowles in expanding into other areas of growth as it looks to offer comprehensive audio solutions to customers.
Knowles already has complementary products and technologies that uniquely positions it to optimize the audio signal path expected to enhance its performance going forward. The technology should also enable the development of new applications. Knowles plans to enhance shareholder value with the acquisition, in the process of developing new products.
The acquisition involved 21,349, 817 shares of Audience Inc (NASDAQ:ADNC) representing an 89.1% stake being accepted as payment based on the terms of the offer. Any other common stock not accepted for payment in the offer remains eligible to receive $2.51 per share in cash without interest.
Cost Savings
The consolidation comes on the heels of Audience Inc (NASDAQ:ADNC) signing a definitive merger agreement with Audience for the merger in an all cash and stock merger transaction. Audience integration should be accretive to Knowles earnings by the fourth quarter of 2016 expected to generate annual cost synergies of $25 million
Audience Inc (NASDAQ:ADNC) acquisition should allow Knowles to save a great deal on manufacturing, procurement, logistics and general administrative functions. Separately, Law Firm Levi & Korsinsky, LLP has opened investigations into the fairness of the sale of Audience to Knowles.
