Dover to acquire NXP's Sound Solutions business line

DOWNERS GROVE, USA: Dover Corp. has signed a definitive agreement to acquire the Sound Solutions business line of NXP Semiconductors N.V.

Sound Solutions, which is headquartered in Vienna, Austria, will become part of Itasca, Illinois based Knowles Electronics within Dover's Electronic Technologies segment.

In business since 1929, Sound Solutions is one of the world's leading manufacturers of dynamic speakers and receivers for cell phones and other consumer electronics, and has been a technology leader in these product categories for over a decade.

With a strong reputation for innovation and customer service, Sound Solutions employs approximately 1,000 people, with manufacturing facilities in Vienna and Beijing. Sound Solutions annual revenue is anticipated to be approximately $330 million in 2010.

The purchase price is $855 million, subject to normal closing adjustments. Dover expects the transaction to be slightly accretive to its earnings per share during the first full year of ownership, subject to final purchase accounting allocations.

"The addition of Sound Solutions to Knowles Electronics is consistent with Dover's strategic goals. Sound Solutions is a technology leader in the communications components space, one of our five focus areas, and serves the high growth mobile handset market. By combining Sound Solutions with Knowles we create an industry leader in an attractive and growing market," said Bob Livingston, Dover's president and CEO.

Dave Van Loan, president and CEO of Dover Electronic Technologies segment commented: "The global cell phone market will exhibit strong growth in the coming years, as consumers have found the cell phone to be indispensable and are always interested in the latest technology. This acquisition will allow Dover to leverage that trend by significantly broadening our product portfolio. By adding the products and capabilities of Sound Solutions, Knowles Electronics will now be the leading audio input and output supplier in the mobile handset industry."

"The quality of the audio is clearly a differentiator in today's mobile phone marketplace. With this acquisition, we will become the premier mobile acoustics company in the world with the capability to greatly enhance user experience with our technology. Together, we will be able to serve our global customers at an even higher level and foresee significant cross-sell opportunities," stated Jeff Niew, President of Knowles Electronics.

The transaction is subject to customary regulatory approvals, and is expected to close around the end of the first quarter of 2011.

Dover was advised by Goldman, Sachs & Co. and Liger Capital Advisors.