Shawshank, VA 5/2/12 (StreetBeat) – Microchip Technology Inc. (Nasdaq: MCHP), a maker of microcontrollers and memory products, agreed to buy Standard Microsystems Corp. (Nasdaq: SMSC) for about $939 million.The $37 per share price is 41 percent higher than Standard Microsystems’s closing price of $26.24 yesterday, Microchip said in a statement today. Standard Microsystems’s shares surged 38 percent to $36.29 at 9:51 a.m. in New York.
Standard Microsystems creates technology that enables the data connections in USB devices and wireless-audio products. With the acquisition, Chandler, Arizona-based Microchip expects to expand its role in consumer and industrial markets.
“This gives them an important technology that is difficult to develop on their own,” said William Harrison, an analyst with Wunderlich Securities Inc. in Baltimore, who rates Standard Microsystems a buy.
Harrison, who had a 12-month price target of $30 for Hauppauge, New York-based Standard Microsystems, said $37 “is a pretty nice deal for shareholders.”
The acquisition is expected to be completed in the third quarter, Microchip said. The company expects the purchase to boost earnings in the first full quarter after completion.
Microchip fell less than 1 percent to $35.27.
Please contact www.thestreetbeat.com for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail bflautt@gmail.com or call (662) 392-0740 for pricing and scheduling.
StreetBeat Disclaimer
No comments:
Post a Comment