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© Microchip Business | March 02, 2018

Microchip to acquire Microsemi for $8.35 billion

The deal will significantly expand Microchip’s solutions for Data Center, Communications, Defense and Aerospace Markets.
Microchip Technology and Microsemi Corporation announces that the companies have signed a definitive agreement under which Microchip will acquire Microsemi for USD 68.78 per share in cash. The acquisition price represents a total equity value of about USD 8.35 billion.

“Even as we execute a very successful Microchip 2.0 strategy that is enabling organic revenue growth in the mid to high single digits, Microchip continues to view accretive acquisitions as a key strategy to deliver incremental growth and stockholder value. The Microsemi acquisition is the latest chapter of this strategy and will add further operational and customer scale to Microchip,” Steve Sanghi, Chairman and CEO of Microchip, says in the press release.

Based on currently available information, Microchip anticipates achieving about USD 300 million in synergies in the third year after close of transaction.

“Joining forces and combining our complementary product portfolios and end market exposure will offer our customers a richer set of solution options to enable innovative and competitive products for the markets they serve,” said Ganesh Moorthy, President and COO of Microchip.

“This transaction represents a compelling opportunity for Microsemi stockholders, employees and customers by combining the leading embedded control market position of Microchip Technology with the world class power, security, reliability and performance solutions from Microsemi,” said James J. Peterson, Chairman and CEO of Microsemi.
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December 13 2018 1:08 pm V11.10.14-2