Microchip Technology Incorporated of Chandler, Arizona, a supplier of microcontroller, mixed-signal, analog and Flash-IP solutions and Microsemi Corporation of Aliso Vieojo, California, a provider of semiconductor solutions have signed a definitive agreement under which Microchip will acquire all of Microsemi’s stock for about $8.35 billion or $68.78 per share in cash.
Microsemi reportedly has an overall enterprise value of about $10.15 billion, including the company’s cash and investments, and subtracting their net of debt. Some of Microsemi’s products include power management and power over Ethernet solutions as well as RF solutions. Microsemi produces chips for communication, data-center, defense, aerospace, and industrial markets, using gallium nitride, silicon, gallium arsenide, and silicon carbide technology.
Microsemi Aquisition Part of Microchip Technology New Strategy of Acquisitions
“We are delighted to welcome Microsemi to become part of the Microchip team and look forward to closing the transaction and working together to realize the benefits of a combined team pursuing a unified strategy. 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,” said Steve Sanghi, Chairman and CEO of Microchip.