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Microchip Technology to Acquire Microsemi (Who Earlier Acquired BC Tech Heavyweight Company PMC-Sierra)
Tuesday, March 27, 2018Company Profile | Follow Company
Burnaby, BC, March 27, 2018--(T-Net)--For those interested in BC tech industry history and local company evolution, US-based Microchip Technology has announced plans this month to acquire Microsemi (who previously acquired local tech company PMC-Sierra).
Microsemi acquired former BC tech industry heavyweight company PMC-Sierra (in Jan 2016), and the company continues to have major operations in Burnaby, BC.
Microsemi also sponsors the major and highly popular annual Microsemi Science Fair Fun Run locally in Vancouver, BC each year (to be held May 27th this year starting at the Athletes Village)
Microchip Technology Incorporated (NASDAQ: MCHP), a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, and Microsemi Corporation (NASDAQ: MSCC), a leading provider of semiconductor solutions, announced that the two companies have signed a definitive agreement pursuant to which Microchip will acquire Microsemi for $68.78 per share in cash.
The acquisition price represents a total equity value of about $8.35 billion, and a total enterprise value of about $10.15 billion, after accounting for Microsemi's cash and investments, net of debt, on its balance sheet at December 31, 2017.
There is no word yet on what changes may occur to Microsemi's BC operations, if any, following completion of the acquisition by Microchip Technology.
"This transaction represents a compelling opportunity for Microsemi stockholders, employees and customers by combining the leading embedded control market position of Microchip Technology with the world class power, security, reliability and performance solutions from Microsemi," said James J. Peterson, Chairman and CEO of Microsemi. "We are delighted to become part of Microchip Technology, a premier company in the semiconductor industry."
The Board of Directors of each company has unanimously approved the acquisition. Subject to approval by Microsemi stockholders, customary regulatory approvals and other closing conditions, the transaction is expected to close in the second quarter of calendar 2018.
You can see the full press release announcing the acquisition online here if interested.
About Microchip Technology
Microchip Technology Inc. (NASDAQ: MCHP) is a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at http://www.microchip.com.
About Microsemi
Microsemi Corporation (Nasdaq: MSCC) offers a comprehensive portfolio of semiconductor and system solutions for aerospace & defense, communications, data center and industrial markets. Products include high-performance and radiation-hardened analog mixed-signal integrated circuits, FPGAs, SoCs and ASICs; power management products; timing and synchronization devices and precise time solutions, setting the world's standard for time; voice processing devices; RF solutions; discrete components; enterprise storage and communication solutions, security technologies and scalable anti-tamper products; Ethernet solutions; Power-over-Ethernet ICs and midspans; as well as custom design capabilities and services. Microsemi is headquartered in Aliso Viejo, California, and has approximately 4,800 employees globally. Learn more at www.microsemi.com.
Forward Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward looking statements include statements regarding (1) the transaction being immediately accretive to Microchip's non-GAAP earnings per share and yielding an estimated $300 million in synergies in the third year after close of transaction, (2) the parties working together to realize the benefits of a combined team pursuing a unified strategy, enabling organic revenue growth in the mid to high single digits, (3) accretive acquisitions being a key Microchip strategy to deliver incremental growth and stockholder value, (4) that the acquisition will add further operational and customer scale to Microchip, creating highly valued and long-lasting revenue streams for Microchip and offering Microchip's customers a richer set of solution options to enable innovative and competitive products for the markets they serve, (5) the transaction being a compelling opportunity for Microsemi stockholders, employees and customers, (6) the expectation that the transaction will close in the second half of calendar 2018 and (7) Microchip's plan to finance the transaction. Microchip and Microsemi caution you that such statements are just predictions and that actual events or results may differ materially.
These statements are subject to a number of risks and uncertainties, including (i) risk that the transaction may not close in the second half of 2018 or at all , (ii) risk that the conditions to the closing of the transaction will not be satisfied, (iii) the uncertain effect of the transaction on Microchip's and Microsemi's existing relationships with customers and vendors and their operating results and businesses; (iv) the costs and outcome of any litigation involving Microchip, Microsemi or the transaction, (v) Microchip's ability to successfully integrate the operations and employees, retain key employees and customers and otherwise realize the expected synergies and benefits of the acquisition, (vi) the impact of any future significant acquisitions that Microchip may make on the business and financial results of Microchip, (vii) economic uncertainty due to monetary policy, political or other issues in the U.S. or internationally, any unexpected fluctuations or weakness in the U.S. and global economies (including China), (viii) changes in demand or market acceptance of Microchip's or Microsemi's products and the products of their respective customers, (ix) changes in U.S. corporate tax laws as a result of the Tax Cuts and Jobs Act of 2017 and other future legislation, (x) foreign currency effects on Microchip's and Microsemi's respective businesses, (xi) competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; the level of sell-through of products through distribution; changes or fluctuations in customer order patterns and seasonality, (xii) the mix of inventory Microchip holds and Microchip's ability to satisfy short-term orders from inventory; changes in utilization of Microchip's manufacturing capacity and Microchip's ability to effectively manage and expand its production levels, Microchip's ability to obtain a sufficient supply of wafers from third party wafer foundries and the cost of such wafers, (xiii) the costs and outcome of any current or future tax audit or any litigation or other matters involving intellectual property, customers, or other issues; disruptions in Microchip's business or the businesses of its customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally and (xv) the terms and mix of financing that Microchip is able to obtain to finance the transaction and whether such terms are favorable to Microchip or not.
Actual results may differ materially from the expected results. For a detailed discussion of these and other risk factors, please refer to Microchip's and Microsemi's filings on Forms 10-K, 10-Q and 8-K. You can obtain copies of Microchip's Forms 10-K, 10-Q, 8-K and other relevant documents for free at Microchip's website (www.microchip.com) and copies of Microsemi's Forms 10-K, 10-Q, 8-K and other relevant documents for free at Microsemi's website (www.microsemi.com) and copies of both companies SEC filings on the SEC's website (www.sec.gov) or from commercial document retrieval services. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in the projections or forward-looking statements contained in this press release. You are cautioned not to place undue reliance on the forward-looking statements in this press release, which speak only as of the date such statements are made. Neither Microchip or Microsemi undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this March 1, 2018 press release or to reflect the occurrence of unanticipated events.
Company Snapshot |
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Microsemi Canada (formerly PMC-Sierra)
Burnaby, BC (InfoTech)
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