Semiconductors and Components

Microsemi Offers Bid for PMC-Sierra for $2.4 Billion

20 October 2015

Microsemi Corp. has put in an alternate bid to acquire PMC-Sierra in an all-cash-and-stock deal that would amount to about $2.4 billion.

The company says its offer for the chipmaker is a superior bid to the offer that Skyworks Solutions Inc. bid for PMC-Sierra last month, which was for $2 billion in cash.

Not only is the offer worth more money, but Microsemi says the transaction would offer greater upside potential in terms of opportunities in the global analog and mixed signal market for growth and profitability.

James L. Peterson, chairman and CEO of Microsemi, says in a statement that the acquisition will give the company a good position in high performance and scalable storage solutions targeted at the data center and cloud applications “and we will benefit from increased scale, industry-leading margins, diversified market exposure, consolidated infrastructure and substantial cost savings in a combination with PMC.”

Microsemi’s proposal was sent to PMC’s board of directors on Monday Oct. 19, 2015 and the company is prepared to amend the transaction structure to an “exchange offer” paving the way for a closing as early as late December 2015—pending swift action by the board of PMC-Sierra.

It also says it plans to fund the transaction with existing cash, $2.7 billion in new transaction debt and $0.6 billion in Microsemi common stock.

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Related links:

IHS Semiconductors & Components

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