Chandler-based Microchip Technology Inc. announced a deal Tuesday to acquire rival chipmaker Atmel Corp. of San Jose, Calif. for roughly $3.56 billion in cash and stock.
Atmel said it broke off its merger with Dialog Semiconductor from September. It called Microchip’s offer “superior.”
Microchip and Atmel say their agreement is worth $8.15 per share, or $3.4 billion, excluding $155 million in Atmel’s cash and investments.
The deal has been approved by each company’s board of directors and is expected to close in the second quarter. It still needs the backing of Atmel’s stockholders.
Microchip said the combined company is expected to generate $170 million in savings and increased revenue beginning in fiscal 2019.
Microchip makes semiconductors used in a variety of computers and electronic devices.
"The Atmel acquisition is the latest chapter of our growth strategy and will add further operational and customer scale to Microchip," Microchip President/CEO Steve Sanghi said in a prepared statement.
Atmel President/CEO Steven Laub said the board of directors determined the deal was superior to the deal with Dialog that was terminated.
"Under the Microchip transaction, Atmel stockholders will receive a much higher cash consideration per share compared to the Dialog deal, as well as the opportunity for further upside through the ownership of stock of Microchip," Laub said in a statement.
Source : http://www.azcentral.com
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