The price to acquire PMC-Sierra just went up as the two potential suitors—Microsemi Corp. and Skyworks Solutions—are one-upping bids in order to snag the big data and networking semiconductor vendor.
Originally approached by Skyworks for a possible $2 billion acquisition, earlier this month Microsemi swept in with a proposed offer at a higher cash amount. Skyworks responded by offering an amended acquisition agreement that would raise the price paid per share to $11.60 up from the original $10.50 per share offered originally. This works out to about $2.27 billion, trumping Microsemi’s $2.25 billion offer.
However, Microsemi countered once again offering $11.88 per share for PMC-Sierra, or about $2.3 billion.
As it stands now, PMC-Sierra has committed to Skyworks in a joint statement from the companies regarding the acquisition, but with this new offer from Microsemi, it may not be a done deal.
A similar bidding war happened earlier this year over Integrated Silicon Solution Inc. (ISSI) where Cypress Semiconductor and a Chinese consortium known as Uphill Investment Co. traded offers for a number of weeks before Uphill’s offer was finally accepted.
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