Filing Flows › Cirrus Logic (CRUS) › Takeover & LBO
Is Cirrus Logic (CRUS) a takeover target?
A leveraged buyout at today's price plus 30% ($142.77 a share) would return about 4% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 3.1% of companies with its figures were bought within a year (0.61× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $142.77 | today's $109.82 plus 30% |
| × shares | 51.5 million | |
| = Equity value | $7.3B | |
| + Debt refinanced | $0 | |
| − Cash | $720M | |
| = Enterprise value | $6.6B | 12.9× EBITDA of $513M |
| Fees | $133M | 2% of the price |
| New debt | $2.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $3.9B | 58% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.2B | $540M | $216M | $235M | $2.6B |
| Year 2 | $2.3B | $564M | $198M | $270M | $2.3B |
| Year 3 | $2.3B | $587M | $177M | $306M | $2.0B |
| Year 4 | $2.4B | $608M | $154M | $342M | $1.7B |
| Year 5 | $2.5B | $626M | $128M | $379M | $1.3B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 9.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $6.0B | |
| − Debt left | $1.3B | |
| = Buyer's equity | $4.7B | |
| Money multiple | 1.20× | on $3.9B put in |
| Buyer's yearly return (IRR) | 3.7% |
Price against return
What the buyer makes at other premiums over today's $109.82.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $120.80 | 11.2% |
| 20% | $131.78 | 7.1% |
| 30% | $142.77 | 3.7% |
| 40% | $153.75 | 0.9% |
| 50% | $164.73 | −1.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.0B | |
| EBITDA, last 12 months | $513M | 25.1% of revenue |
| Depreciation and amortization | $53.2M | |
| Capital spending | $31.0M | |
| Debt | $0 | |
| Cash | $720M | |
| Share price | $109.82 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 5.1% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 17% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cirrus Logic would cost about $142.77 a share, $7.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $123.00 | $6.3B |
| Median | 30% | $142.77 | $7.3B |
| High end (a quarter paid more) | 31% | $143.86 | $7.4B |
The odds, from history
Historically 3.1% of companies with its figures were bought within a year (0.61× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Cirrus Logic's latest quarter
Cirrus Logic, Q2 FY27: revenue $559M (-0.3% year over year), operating margin 23.7%, net earnings $115M, operating cash flow $50.9M. The chart follows the revenue to costs, profit and cash.
Questions
Is Cirrus Logic being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Cirrus Logic?
A leveraged buyout at today's price plus 30% ($142.77 a share) would return about 4% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Cirrus Logic cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Cirrus Logic would cost about $142.77 a share, $7.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.