P.M. BRIEFING : Japanese Firm to Acquire Tustin Silicon Systems for $200 Million

Silicon Systems Inc. of Tustin has agreed to be bought by Japanese recording tape company TDK Corp. in a deal that values the maker of integrated computer circuits at $200 million.

The deal, which was announced today, shouldn’t be portrayed as a Japanese acquisition of American technology because Silicon Systems applies existing technology, the company’s president, Carmelo Santoro, has said.

The Orange County company makes integrated circuits for use in computer hard-disk memory systems and in modems, the devices that allow computers to communicate with each other.

TDK has agreed to pay $20 a share, or a total of about $200 million, for Silicon Systems stock, the companies announced. Once the Japanese company has acquired a majority of the stock through a tender offer to shareholders, the companies will be merged.

Silicon Systems management and work force will be retained, said Ken Aoshima, a vice president of TDK USA, the company’s U.S. marketing arm.

The California company, with 950 employees in the United States and 450 in Singapore, reported a profit of $12.7 million on sales of $120.8 million in 1988.