Maxim Integrated Products announced it has entered into a definitive agreement to acquire Volterra Semiconductor Corp. for $23 per share, which represents a 55 percent premium on Volterra’s April 14 closing share price.
The transaction is valued at approximately $605 million equity value or $450 million net of Volterra's cash position of approximately $155 million.
The company reported its second quarter ended June 30, 2013 a net revenue of $34.4 million, a 21% decrease from $43.6 million in the second quarter of 2012, and a 14% decrease from $39.9 million in the first quarter of 2013.
Volterra, based in Fremont, CA, provides power management solutions primarily for the enterprise, cloud computing, communications and networking markets. Volterra's high-current technology expands Maxim’s position in this growing segment of the analog market.
San Jose, CA-based Maxim offers a broad portfolio of power conversion products including switching regulators, linear regulators, charge pumps, digital Point-of-Load (POL) converters and Power Management Integrated Circuits (PMICs), primarily in medium-to-low current applications.
At approximately $9 billion in annual sales, power management is currently the largest and fastest-growing product segment in the analog market, according to sources.
Pending regulatory approvals, Maxim's acquisition of Volterra is expected to close early in the December quarter.
Maxim reported net revenue of $608 million for its fourth quarter of fiscal 2013 ended June 29, 2013, a slight increase from the $605 million revenue recorded in the prior quarter. For fiscal year 2013 the company projects revenues of approximately $2.4 billion.