Skyworks to acquire PMC-Sierra for $2 billion

Skyworks will acquire PMC for USD 10.50 per share in an all-cash transaction valued at approximately USD 2 billion. The deal will fortify Skyworks' position on the RF and mixed signal semiconductor arena. Upon completion of the acquisition, Skyworks expects annual revenues of more than USD 4 billion with gross margin in the 55 percent range and operating margin exceeding 40 percent. “With our acquisition of PMC, Skyworks will be uniquely positioned to capitalize on the explosive demand for high performance solutions that seamlessly connect, transport and store Big Data,” said David J. Aldrich, chairman and chief executive officer of Skyworks. “Specifically, we plan to leverage PMC’s innovative storage systems, flash controllers, optical switches and network infrastructure solutions to expand our engagements with some of the world’s leading OEMs and ODMs as well as emerging hyperscale data center customers. At a higher level, this complementary yet highly synergistic acquisition is consistent with our stated strategy of diversifying into adjacent vertical markets while leveraging our system-level expertise and global scale,” Aldrich adds. “The PMC team is excited to join forces with Skyworks to realize our vision of transforming the broader communications landscape through unparalleled product breadth and operational scale,” said Greg Lang, president and chief executive officer of PMC. Under the terms of the agreement, PMC’s stockholders will receive USD 10.50 in cash for each share of PMC common stock held at closing. This price represents a 37 percent premium to the close of PMC’s stock as of October 5, 2015.