Microsemi bids $2.2 billion for PMC-Sierra
It compares with a cash offer of $10.50 per share made by Skyworks on October 7.
The Microsemi offer values PMC-Sierra, a developer and vendor of mixed-signal ICs for networking and storage applications, at $2.4 billion and will cost $2.2 billion net of cash assets held by PMC-Sierra.
The breakdown of the offer is $8.75 in cash plus $2.75 in stock.
"Based on extensive discussions with PMC over the past 18 months and comprehensive analysis, we believe this transaction offers compelling strategic and financial benefits for the shareholders of both Microsemi and PMC," said James J. Peterson, Microsemi’s chairman and CEO.
Microsemi said it anticipates achieving more than $100 million in annual cost synergies with greater than $75 million of those to be realized in the first full quarter of combined operations. The company added that it intends to fund the transaction with a $2.7 billion in new transaction debt. Shareholders of Microsemi and PMC-Sierra will own approximately 85 percent and 15 percent, respectively, of the combined entity post completion of the transaction.
Microsemi added that its proposal would only be subject to national regulatory approval whereas the Skyworks offer would need international approvals.
Related links and articles:
News articles:
Skyworks to buy PMC-Sierra for $2 billion
Report: Fairchild in sale talks with Infineon, On Semi
Report: Analog Devices, Maxim in merger talks
Sony acquires SoftKinetic for ranging technology
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
