Microchip Technology in talks to buy Microsemi – source

Microchip Technology in talks to buy Microsemi – source

The potential deal will value Microsemi at mid-$60s per share and a deal could be struck as early as this week, the source told Reuters.

microchip
SILICON VALLEY:
Chipmaker Microchip Technology is in talks to buy Microsemi Corp, the largest U.S. commercial supplier of military and aerospace semiconductor equipment, a source familiar with the matter said on Tuesday.

The potential deal will value Microsemi at mid-US$60s per share and a deal could be struck as early as this week, the source told Reuters.

Microsemi has a market capitalization of US$7.55 billion, based on the stock’s Monday close.

The company was exploring its options, including a possible sale, after it received a takeover approach, Reuters reported last month.

The deal, if finalized, comes amid a new wave of consolidation in the semiconductor industry.

Broadcom Ltd on Monday had called a proposal by US semiconductor peer Qualcomm Inc for a new meeting to negotiate an increase to Broadcom’s US$117 billion acquisition offer “engagement theater” aimed at dodging a takeover battle.

Arizona-based Microchip purchased fellow chipmaker Atmel in January 2016 for US$3.42 billion in cash and stock.

Microchip and Microsemi did not respond to request for comments outside regular business hours.

The Wall Street Journal reported earlier Microchip is nearing a deal to buy Microsemi.

 

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