Oak Hill, Tallwood to buy semiconductor company

The two firms have partnered to buy Cypress Semiconductor Corp. in a deal worth $53m.

Oak Hill Capital Partners and Tallwood Venture Capital have agreed to buy fabless semiconductor maker Silicon Valley Technology Center from its parent company, Cypress Semiconductor Corp., for about $53 million (€41 million) in cash.

The deal is expected to close in March.

The deal sees Cypress transfer the division’s equipment, process technologies and personnel to the new private equity owners.

“Historically, innovation in the fabless semiconductor industry has been limited to device architecture and circuit design,” Luis Arzubi, a general partner at Tallwood Venture Capital, said in the statement. “Going forward, we believe that new semiconductor materials, processes and devices represent the new frontier in which rich innovation will occur.”

Based in Silicon Valley, Silicon Valley Technology Center provides established companies and startups the chance to develop silicon-based technologies, the statement said.

Tallwood invests exclusively in semiconductor and related technologies. Its portfolio companies include Marvell Technology Group, a maker of communications infrastructure devices that trades on the Nasdaq under the ticker symbol MRVL, and SiRF Technology Holdings, a developer of semiconductor and software products that enable location-awareness technologies such as Bluetooth. SiRF also trades on the Nasdaq under the ticker symbol SIRF.

Led by Robert Bass, Oak Hill has approximately $4.6 billion of capital under management. The firm agreed to buy nine network-affiliated television stations from The New York Times Company for $575 million earlier this month.