Microchip Technology to acquire Silicon Storage Technology for $284 million

Microcontrollers and analog semiconductors provider Microchip Technology yesterday entered into a deal to acquire memory and non-memory products manufacturer Silicon Storage Technology Inc (SST) for 284 million.

Chandler, Arizona-based Microchip Technology will pay $2.85 per share of SST in cash, a 53.2 per cent premium to the closing price per share of SST's stock on 12 November 2009, under the previously announced merger agreement between SST and Technology Resources Holdings, which has now been cancelled.

SST has terminated its previously announced merger agreement prior to entering into the definitive agreement with Microchip.

Headquartered in Sunnyvale, California, SST is the fifth-largest NOR flash supplier in the world and is a major supplier of integrated circuits for high-volume applications in the Internet computing, digital consumer, networking, and wireless communications markets.

Microchip is a developer and manufacturer of microcontroller and analog semiconductors. Its products are used in a range of embedded control applications. It develops products featuring on-board flash memory technology, and a broad spectrum of high-performance linear, mixed-signal, power management, thermal management, battery management and interface devices.

Microchip principally serves the automotive, communications, computing, consumer, and industrial control markets. It also operates a design centre in Bangalore, its second-largest outside the US.