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GigOptix renews interest in acquiring GSI Technology
GigOptix is renewing its proposal to acquire all of the outstanding shares of GSI Technology’s common stock for an aggregate consideration equal to USD 6.50 per share.
On August 18, 2014, GigOptix presented to GSI Technology a proposal to acquire all of its outstanding shares of common stock for per share consideration of USD 6.50. The offer represented a 32% premium to the then share price of GSI Technology. In addition, it represented a 10% premium to the highest price at which the common shares of GSI Technology have traded since GigOptix withdrew its offer on November 14, 2014.
According to GigOptix, GSI Technology rebuked all its efforts to engage in a direct dialogue during the period from August 18 to November 14, 2014.
"From an operating standpoint, we believe GSI Technology results continue to disappoint the investor community. Revenues for GSI Technology’s fiscal year ended March 31, 2015 were down 8.7% from a year earlier. As opposed to what GSI Technology saw for its last fiscal year, GigOptix experienced 23% revenue growth year-over-year for the quarter ended March 31, 2015. Moreover, GigOptix’ initial guidance for the 2015 fiscal year is that revenue will grow approximately 14% in 2015 over 2014.
I am writing to you again on behalf of the Board of Directors of GigOptix, Inc. to renew our proposal for a business combination of GigOptix and GSI Technology. As we did last August, we believe that our proposal continues to represent a compelling value realization event for your stockholders and that a combination would create significant synergies between our businesses.
In light of the economic position of the worldwide telecommunications market and the revenues which GSI Technologies has been reporting, we believe a combination would further enhance our collective product and service offerings, allowing us to strengthen the value proposition that we provide to our customers through a wider range of companion and complementary products and more effectively challenge our respective competitors," states the letter that GigOptix sent to GSI Technology’s board of directors.
To read the letter in its entirety please click here
