Microsemi Corporation which offers semiconductor mixed signal integrated circuits and discrete semiconductors to defense, security, aerospace, enterprise, medical and other industries is all set to buy PMC-Sierra for $2.5billion. PMC Sierra is a chip and software maker for networks storing big data.
In early October this year, Skyworks which also offers semiconductors for use in radio frequency and mobile communications offered a purchase deal worth $2 billion in cash to buy PMC. But the deal did not work out and finally, it was Microsemi which bagged the company for $2.5 billion.
Digging deep into the details, Microsemi agreed to acquire PMC for $9.22 in cash and 0.0771 of a share of Microsemi stock for each share of PMC, a 77 premium to the stock price on Sept. 30. The raised offer came after PMC-Sierra rejected Microsemi’s original offer of $8.75 in cash and 0.0736 of Microsemi stock for each share of PMC, representing a $2.4 billion transaction value
More details will be updated shortly!