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Ars Technica seems to have broken the news and put a number of clues together. A couple of employees had updated their LinkedIn profiles but removed the info quickly. In addition, the company's website has been down, erased from existence.
We expect official word sometime soon but all signs point to yes.
There's also a great article on it here: The ARM, the PPC, the x86, and the iPad... — The NeoSmart Files
(Source: Report: Apple purchases another processor design house)