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© andrzej thiel dreamstime.com Components | August 20, 2014

GigOptix looking to acquire GSI Technology

GigOptix is proposing to acquire all of the outstanding shares of GSI Technology, for consideration of USD 6.50, consisting of USD 2.00 per share in cash.
The value of the transaction would be at approximately USD 161 million in cash, stock and special dividend. On a preliminary basis and subject to confirmatory due-diligence, GigOptix believes that the combination, which would have generated approximately USD 86 million in sales based on the reported revenue results over the most recent trailing twelve months for each company, would be immediately accretive on an Adjusted EBITDA basis.

“We have great respect for GSI Technology, and together, we can create a world-class high-speed communication semiconductor business,” said Dr. Avi Katz, Chairman and Chief Executive Officer of GigOptix, Inc. “We believe our combination will deliver superior value to our respective shareholders, as it will strengthen the value proposition that we provide to our mutual customers becoming a major lead supplier of semiconductor devices for the new era of high-speed core, metro and cloud connectivity infrastructure markets. With the combination, GSI Technology’s shareholders, as new shareholders in GigOptix, would not only achieve a significant realization event, but would also be able to share in the growth of the combined company.”

GigOptix’s proposal is subject to the negotiation of a definitive merger agreement, and receipt of necessary board, stockholder and regulatory approvals, as well as completion of a due diligence review of GSI Technology.

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