Microsemi Wins Battle to Buy PMC-Sierra
24 Novembro 2015 - 11:50AM
Dow Jones News
Microsemi Corp. said Tuesday it had reached a deal to buy chip
maker PMC-Sierra Inc. for $2.5 billion in cash and stock, ending
weeks of dueling negotiations with Skyworks Solutions Inc.
Skyworks said PMC terminated its merger agreement after Skyworks
decided not to modify its latest offer. Skyworks also said it was
entitled to an $88.5 million termination fee from PMC.
Microsemi will acquire PMC for its previously announced offer of
$9.22 in cash and 0.0771 of a share of Microsemi common stock for
each share of PMC common stock. The transaction represents a 77.4%
premium to PMC's Sept. 30. closing price, the day before it was
reported PMC could be seeking a buyer, and a 1.3% premium to the
closing price Monday.
Microsemi Chief Executive James Peterson reiterated the
acquisition will provide Microsemi with a leading position in high
performance and scalable storage solutions, while also adding a
complementary portfolio of high-value communications products.
"As we integrate the team and drive profitability, our combined
company will benefit from increased scale, industry-leading
margins, diversified market exposure, consolidated infrastructure
and substantial cost savings," he said.
Last week, Microsemi Corp. again sweetened its proposal to
acquire PMC after PMC's board chose not to recommend the
semiconductor company's most recent offer despite being dubbed
"superior" to rival Skyworks' bid.
Microsemi proposed to acquire PMC for $2.3 billion in cash and
stock, compared with Skyworks' all-cash $2.24 billion deal.
Skyworks in turn didn't make another bid.
"Skyworks maintains a highly disciplined approach to the
assessment of potential acquisition candidates, and at an increased
valuation, PMC no longer meets Skyworks' financial criteria," the
company said while announcing the agreement termination.
Write to Anne Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 24, 2015 08:35 ET (13:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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