Microchip Tech in talks to buy Microsemi
Wednesday, 28 February 2018
NEW YORK, Feb 27 (Reuters): Chipmaker Microchip Technology is in talks to buy Microsemi Corp, the largest US commercial supplier of military and aerospace semiconductor equipment, a source familiar with the matter said on Tuesday.
The potential deal will value Microsemi at mid-$60s per share and a deal could be struck as early as this week, the source said.
Microsemi has a market capitalisation of US $7.55 billion, based on the stock's Monday close.
The company was exploring its options, including a possible sale, after it received a takeover approach, Reuters reported last month.
The deal, if finalised, comes amid a new wave of consolidation in the semiconductor industry.
Arizona-based Microchip purchased fellow chipmaker Atmel in January 2016 for $3.42 billion in cash and stock.