PDSTI completes acquisition of Montage

Montage Technology Group Limited, a global fabless provider of analog and mixed-signal semiconductor solutions addressing the home entertainment and cloud computing markets, today announced that Montage Technology Global Holdings, Ltd., an entity jointly formed by Shanghai Pudong Science and Technology Investment Co., Ltd. (“PDSTI”) and China Electronics Investment Holdings Limited (“CEC Investment”), has completed its acquisition of the company. The merger values Montage’s equity at approximately US$693 million, on a fully diluted basis.

“We are very delighted to have completed the transaction with PDSTI. CEC Investment is a wholly owned subsidiary of China Electronics Corporation (“CEC”), the largest state-owned IT company in China. CEC owns integrated industry chains and strong distribution channels and technology forces in those areas such as information services, integrated circuit, and new display technology. Montage owns a world class chip design team, is capable of managing and mastering multi-markets and multi-products environment and leading an international technical team, is a valuable composition of CEC’s overall strategy. This transaction is a new effort of CEC Investment to build and develop the global integrated circuits ecosystem pursuant to CEC’s industry strategy. We hope that, along with Montage team and our partner in this joint acquisition, CEC could create more value for the market, its shareholders, the whole society and the nation,” said Mr. Deng Xiangdong, the Assistant General Manager of CEC, and the General Manager of CEC Investment.

“Montage is a prominent, high-growth fabless design company. We are very delighted to have completed the transaction with CEC Investment, which we hope would enable Montage to gain full access to the Chinese market and the various resources available, paving the road for superior and faster growth for both parties. The acquisition is also a strong testament to our long-term commitment to building a world-class semiconductor platform. We are excited to be working alongside Montage to achieve a new era of innovation and growth,” said Dr. Xudong Zhu, Chairman of PDSTI.

“We are pleased that the transaction has been completed and look forward to the increased flexibility and strategic advantages that merging with PDSTI and CEC will provide. We believe that with the support of CEC and PDSTI, we will continue to deliver innovative, best-in-class customer solutions for the semiconductor market,” said Dr. Howard Yang, Chief Executive Officer of Montage, who, together with the current management team, will continue to lead Montage.

Stifel served as financial advisor to Montage and O’Melveny & Myers LLP served as legal advisor to Montage. Fenwick & West served as legal advisor to CEC. Barclays Bank PLC and China International Capital Corporation Limited served as financial advisors to PDSTI, and Kirkland & Ellis served as legal advisor to PDSTI.


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