Jazz Technologies Acquired By Tower Semiconductor

Newport Beach-based Jazz Technologies has been acquired by an Israeli semiconductor foundry, Tower Semiconductor, the firms said late Monday. Tower Semiconductor and Jazz Technologies said that Tower will acquire all of the outstanding shares of Jazz in a stock-for-stock transaction, worth approximately $169M. The firms said they believe the merger will create economies of scale and improved margins. The acquisition follows an earlier move by Jazz to find a buyer; the company had hired UBS Securities as a financial advisor in February of this year, saying it was looking at "strategic alternatives" for the semi firm. Tower Semiconductor was represented by Citi, Yigal Arnon & Co., and O'Melvany & Myers LLP; Jazz also had Cooley Godward Kronish LLp and Meitar Liquornik Geva & Leshem Brandwein representing the firm, in addition to UBS.