Microchip Technology Inc. (Chandler, Ariz.) has agreed to pay $394 million in cash for power semiconductor vendor Supertex Inc. (Sunnyvale, Calif.), or $246 million net of cash and investments on Supertex's balance sheet.
The deal has been agreed by both boards of directors and is expected to close in the second quarter of 2014, subject to approval by Supertex shareholders and regulatory approvals.
Supertex is expecting annual sales of about $67 million in its fiscal year 2014, which compares with Microchip annual revenue of about $1.6 billion in FY13, which is headed towards $2 billion in FY14.
“We are pleased to have Supertex become part of the Microchip team. Supertex’s deep domain knowledge in high voltage analog and mixed signal technologies, and strong position in the Medical, Industrial and Lighting markets, complement many of Microchip initiatives in these areas. We believe that combining Supertex’s business with Microchip’s Analog business will enable significant synergies and cross selling opportunities,” said Steve Sanghi, CEO of Microchip, in a statement.
Sanghi has been taking Microchip on a consolidator's spending spree in recent months and years.
In November 2013 Microchip announced the acquisition of EqcoLogic NV (Brussels, Begium), a developer of equalizer and transceiver ICs for coaxial cable signal transmission. In 2012 Microchip acquired Roving Networks a vendor of Bluetooth wireless modules and other connectivity solutions. In the same year Microchip acquired Standard Microsystems Corp. for about $750 million bringing expertise in low-power USB, Ethernet, wireless audio and automotive applications.
"We believe that this acquisition provides the best vehicle for us to realize significant value for Supertex’s shareholders, as well as the opportunity to scale up to the much stronger sales and manufacturing platforms of Microchip” said Henry Pao, CEO of Supertex, in the same statement.
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