Chip vendor Microsemi Corp. said Monday (Oct. 21) it plans to acquire precision time and frequency technology provider Symmetricom Inc. in a cash deal worth about $230 million.
Symmetricom (San Jose, Calif.) provides timekeeping technology used in GPS satellites, national time references and national power grids as well as in critical military and civilian networks. Microsemi plans to accelerate the adoption of Symmetricom's chip scale atomic clock technology into more markets.
Under the terms of a deifnitive agreement signed by the companies, Microsemi (Aliso Viejo, Calif.) will acquire Symmetricom for $7.18 per share. According to Microsemi, the offer represents a premium of 49 percent over the average closing price of the stock over the past 90 days.
"The acquisition of Symmetricom will create the largest and most complete timing portfolio in the industry today," said James J. Peterson, Microsemi president and CEO, in a statement. "From source to synchronization to distribution, Microsemi will offer an end to end timing solution for an expanded range of markets, driving increased dollar content opportunity and revenue growth."
Microsemi said both company's boards have already approved the deal. The company expects the transaction to close during its fiscal first quarter, which ends Dec. 29. The deal is subject to regulatory approval and the approval of Symmetricom shareholders.
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