Microchip Technology Inc. said it agreed to buy Atmel Corp. in a transaction valued at $3.56 billion, ending a bidding war amid record semiconductor industry consolidation. Microchip is paying $8.15 a share, with $7 in cash and a fraction of a share of its common stock valued at $1.15 based on a 10-day average closing price, the companies said Tuesday in a statement, affirming the price announced last week. “As the semiconductor industry consolidates, Microchip continues to execute a highly successful consolidation strategy with a string of acquisitions that have helped to double our revenue growth rate compared to our organic revenue growth rate over the last few years,†Microchip Chief Executive Officer Steve Sanghi said in the statement. The announcement is the final stage in bidding for the small San Jose, California-based chip company that’s future is being determined amid a historic round of mergers that made 2015 a record year for semiconductor deals. Chipmakers are getting together at an accelerated pace as they confront increasing costs and a narrowing of their customer lists. Microchip, based in Chandler, Arizona, successfully topped an offer for Atmel from U.K.-based Dialog Semiconductor Plc. “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,†Atmel CEO Steven Laub, in the statement.
Source: Bloomberg.comMicrochip Technology Acquires Atmel for $3.6 Billion
Industry: Electronics 2016-01-20
