Cirrus Logic Acquires Peak Audio
Move Combines Leaders in Audio ICs and Audio Networks

In an announcement made late Friday, April 27, 2001, Cirrus Logic, Inc. www.cirrus.com (Nasdaq: CRUS), the world’s leading supplier of audio IC’s (integrated circuits), is acquiring the assets of Colorado-based Peak Audio, Inc. www.peakaudio.com. Under the deal, Peak Audio will become a wholly owned subsidiary of Cirrus Logic.

The cash transaction between the two entities is expected to close on Monday, April 30, 2001. Financial terms were not disclosed. The transaction is expected to be accretive on a cash basis within six months. (For more in this regard, go to: http://biz.yahoo.com/bw/010427/2019.html)

An official statement from Austin-based Cirrus Logic said the company “expects to leverage Peak Audio’s industry-leading skills and complementary technologies to develop a broad range of entertainment-centric audio solutions for networked environments in both the commercial and consumer audio markets.”

Austin, TX-based Cirrus Logic is a premier supplier of high-performance analog and DSP chip solutions for Internet entertainment electronics. The company targets high-volume audio, storage and communications applications. Cirrus Logic sells its products under the Crystal, Maverick and 3Ci brands as well as its own name.

Meanwhile, Boulder, CO-based Peak Audio specializes in the development of digital audio products, with their primary product line, CobraNet, combining proprietary software, hardware and a network protocol to distribute simultaneously many channels of real-time, high-quality digital audio over an Ethernet network.

With a total market share estimated to be as high as 80 percent, Peak Audio leads the commercial audio network and installed-sound audio markets based on established relationships with many of the top suppliers of commercial audio systems.

“We see a strong future in networked entertainment solutions,” said David D. French, Cirrus Logic's president and chief executive officer. “According to research firm In-Stat, the digital home network market is expected to grow from five million to more than 27 million digitally networked homes worldwide by 2004. This acquisition creates a great opportunity to develop cost-effective, networked entertainment solutions based on our combined leadership positions.”

The official Cirrus Logic statement offered this scenario: “Imagine a home where audio entertainment connects effortlessly from room to room. Where it’s possible, for example, to route music to and from multiple sources and locations – such as your office PC or living room entertainment center - to speakers in your kitchen, or den, or bedroom or wherever – using Ethernet or existing home wiring or wireless technologies. The substantial emerging market for analog and digital signal processing (DSP) components to service this vision is why Cirrus Logic is acquiring the assets of Peak Audio.”

All 18 Peak Audio technology and implementation experts will work for Cirrus Logic, including Charles Anderson, vice president of engineering, and Rich Zwiebel, vice president of marketing. Peak Audio will report to Jason Carlson, vice president and general manager of Cirrus Logic’s Consumer Products Division, but will operate as a separate organization and will remain in Boulder.

In another notable development, pro audio industry veteran Jimmy Kawalek has been named national sales manager for Peak Audio. Kawalek has enjoyed a relationship with the company for the past several years, and his primary duties will be to service most existing Peak Audio clients in addition to developing new partners and affiliates. He will be based in southern California.

Click here to read a follow up by Christian Doering