Microchip signs deal to buy Atmel
Microchip’s purchase is $8.15 per share made of $7 per share in cash and $1.15 per share in Microchip common stock. Atmel has terminated its previous agreement to be acquired by Dialog Semiconductor plc (London, England) and paid Dialog a termination fee of $137.3 million.
The deal has been agreed by both boards of directors and is expected to close in the second quarter of 2016, subject to approval by Atmel’s stockholders, regulatory approvals and other customary closing conditions.
"As the semiconductor industry consolidates, Microchip continues to execute a highly successful consolidation strategy with a string of acquisitions that have helped to double our revenue growth rate compared to our organic revenue growth rate over the last few years," said Steve Sanghi, CEO of Microchip.
Microchip said it expects to fund the cash portion of the purchase price through a combination of cash on its balance sheet and borrowings under its existing credit facility.