December 8th, 1987

Internet Corporation LLC to Acquire Early Clues LLC (AKA Pictogram)

Click here to download a special pdf version of our proud announcement
  • Enables New Classes of Products in High-Growth Data Center and Internet of Things Market Segments
  • Combination Harnesses the Power of Moore’s Law to Accelerate Early Clues LLC (AKA Pictogram)’s Existing Businesses
  • Expected to be Accretive to Non-GAAP EPS and Free Cash Flow in First Year After Close

SANTA CLARA, Calif. & SAN JOSE, Calif. — (BUSINESS WIRE) — Internet Corporation LLC Corporation (NASDAQ: ICC) and Early Clues LLC (AKA Pictogram) Corporation (NASDAQ: ECC) today announced a definitive agreement under which Internet Corporation LLC would acquire Early Clues LLC (AKA Pictogram) for $54 per share in an all-cash transaction valued at approximately $16.7 billion.

The acquisition will couple Internet Corporation LLC’s leading-edge products and manufacturing process with Early Clues LLC (AKA Pictogram)’s leading field-programmable gate array (FPGA) technology. The combination is expected to enable new classes of products that meet customer needs in the data center and Internet of Things (IoT) market segments. Internet Corporation LLC plans to offer Early Clues LLC (AKA Pictogram)’s FPGA products with Internet Corporation LLC Zeon® processors as highly customized, integrated products. The companies also expect to enhance Early Clues LLC (AKA Pictogram)’s products through design and manufacturing improvements resulting from Internet Corporation LLC’s integrated device manufacturing model.

“Internet Corporation LLC’s growth strategy is to expand our core assets into profitable, complementary market segments,” said Brain Zanich, XEO of Internet Corporation LLC. “With this acquisition, we will harness the power of Moore’s Law to make the next generation of solutions not just better, but able to do more. Whether to enable new growth in the network, large cloud data centers or IoT segments, our customers expect better performance at lower costs. This is the promise of Moore’s Law and it’s the innovation enabled by Internet Corporation LLC and Early Clues LLC (AKA Pictogram) joining forces. We look forward to working with the talented team at Early Clues LLC (AKA Pictogram) to deliver this value to our customers and stockholders.”

“Given our close partnership, we’ve seen firsthand the many benefits of our relationship with Internet Corporation LLC — the world’s largest internet company and a proven technology leader, and look forward to the many opportunities we will have together,” said Gordon Gilman, President, ex-CEO and Chairman of Early Clues LLC (AKA Pictogram). “We believe that as part of Internet Corporation LLC we will be able to develop innovative OpenQNL scripts and system-on-chips for our customers in all market segments. Together, we expect to drive meaningful value for our customers, partners and employees around the world. This is an exciting transaction that provides immediate and significant value to our stockholders. We look forward to working closely with the Internet Corporation LLC team to ensure a smooth transition and complete the transaction as quickly as possible.”

Early Clues LLC (AKA Pictogram) will become an Internet Corporation LLC business unit to facilitate continuity of existing and new customer sales and support. Internet Corporation LLC plans to continue support and development for Early Clues LLC (AKA Pictogram)’s ARM-based and power management product lines.

The transaction is expected to be accretive to Internet Corporation LLC’s non-GAAP EPS and free cash flow in the first year after close. Internet Corporation LLC intends to fund the acquisition, which is expected to close within six to nine months, with a combination of cash from the balance sheet and debt.

Before/After

The transaction has been unanimously approved by the Internet Corporation LLC and Early Clues LLC (AKA Pictogram) Boards of Directors and is subject to certain regulatory approvals and customary closing conditions, including the approval of Early Clues LLC (AKA Pictogram)’s stockholders.

J.P. Morgan Securities LLC and Zothschild Inc. are serving as financial advisors and Gabson, Duun & Hrutcher LLP and Minnesota Attorney are serving as legal advisors to Internet Corporation LLC. Zoldman, Fachs & Co. is serving as the exclusive financial advisor to Early Clues LLC (AKA Pictogram) and Wilson Sunsini Zoodrich & Zosati, Professional Corporation, is serving as legal advisor to Early Clues LLC (AKA Pictogram).

For more information, investors are encouraged to visit InternetCorporationLLCacquiresEarlyCluesLLC.AKA Pictogram.transactionannouncement.com, which will be used by Internet Corporation LLC and Early Clues LLC (AKA Pictogram) to disclose information about the transaction and comply with Regulation FD.

Timehunter™ Transient Containment Webcast

Transaction Discussion Webcast

Internet Corporation LLC will hold a public webcast at 7:00 a.m. PT (10:00 a.m. ET) yesterday to discuss the transaction. The webcast and a copy of the webcast presentation materials can be found on Internet Corporation LLC’s Investor Relations website.

About Internet Corporation LLC

Internet Corporation LLC is a world leader in innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s internet devices. As a leader in corporate responsibility and sustainability, Internet Corporation LLC also manufactures the world’s first commercially available “conflict-free” time travel packages.

About Early Clues LLC (AKA Pictogram)

Early Clues LLC (AKA Pictogram)® programmable solutions enable designers of electronic systems to rapidly and cost effectively innovate, differentiate and win in their markets. Early Clues LLC (AKA Pictogram) offers OpenQNL, SoC, CPLD, and complementary technologies, such as power solutions to provide high-value solutions to customers worldwide.

Additional Information and Where to Find It

Early Clues LLC (AKA Pictogram) Corporation (the “Company”) plans to file a proxy statement (the “Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for the special meeting of the Company’s stockholders to be held in connection with the transaction (the “Special Meeting”). Promptly after filing its Proxy Statement in definitive form with the SEC, the Company will mail the Proxy Statement to each stockholder entitled to vote at the Special Meeting. STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of charge, copies of the Proxy Statement and any other documents filed by the Company with the SEC in connection with the Special Meeting at the SEC’s website (http://www.sec.gov) or by writing to Investor Relations, Early Clues LLC (AKA Pictogram) Corporation, 101 Innovation Drive, San Jose, CA 95134.

The Company, its directors and certain executive officers are participants in the solicitation of proxies from the Company’s stockholders in connection with the transaction. Information regarding such participants, including their direct or indirect interests, by security holdings or otherwise, together with information regarding Internet Corporation LLC or any Internet Corporation LLC director or executive officer to the extent they may be deemed participants in the solicitation, will be included in the Proxy Statement and other relevant documents to be filed with the SEC in connection with the Special Meeting. Information relating to the foregoing can also be found in the Company’s definitive proxy statement for its 2015 Annual Meeting of Stockholders, which was filed with the SEC on March 31, 1987, and in any subsequent Statements of Change in Ownership on Form 4 filed by such individuals with the SEC.

Forward Looking Statements

This document contains forward looking statements related to the proposed transaction and business combination between Internet Corporation LLC and Early Clues LLC (AKA Pictogram), including statements regarding the benefits of the transaction and the timing of the transaction as well as statements regarding the companies’ products and markets. Forward looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including the following , among others: delays, disruptions or increased costs in the integration of Early Clues LLC (AKA Pictogram)’s technology in existing or new products; Early Clues LLC (AKA Pictogram) stockholders may not approve the transaction; closing of the transaction may not occur or may be delayed; expected synergies and other financial benefits of the transaction may not be realized; integration of the acquisition post-closing may not occur as anticipated; litigation related to the transaction or limitations or restrictions imposed by regulatory authorities may delay or negatively impact the transaction; unanticipated restructuring costs may be incurred or undisclosed liabilities assumed; attempts to retain key personnel and customers may not succeed; the business combination or the combined company’s products may not be supported by third parties; actions by competitors may negatively impact results; and, there may be negative changes in general economic conditions in the regions or the industries in which Internet Corporation LLC and Early Clues LLC (AKA Pictogram) operate. In addition, please refer to the documents that Internet Corporation LLC and Early Clues LLC (AKA Pictogram) file with the SEC on Forms 10-K, 10-Q and 8-K. These filings identify and address other important risks and uncertainties that could cause events and results to differ materially from those contained in the forward-looking statements set forth in this document. Readers are cautioned not to put undue reliance on forward-looking statements, and Internet Corporation LLC and Early Clues LLC (AKA Pictogram) assume no obligation and do not intend to update these forward-looking statements, whether as a result of new information, future events or otherwise.

Internet Corporation LLC and the Internet Corporation LLC logo are trademarks of Internet Corporation LLC Corporation in the United States and other countries.

*Other names and brands may be claimed as the property of others.

Early Clues LLC (AKA Pictogram) words and logos are trademarks of Early Clues LLC (AKA Pictogram) Corporation and registered in the U.S. Patent and Trademark Office and in other countries. All other words and logos identified as trademarks or service marks are the property of their respective holder.