Microchip Technology raises bid for Silicon Storage
24 Feb 2010
Microcontrollers and analog semiconductors provider Microchip Technology has raised its $284-million acquisition offer for Silicon Storage Technology to about $287.6 million, after SST said that it has received a rival bid from an unnamed private equity firm.
Early this month, Arizona-based Microchip Technology had entered into a deal to acquire memory and non-memory products manufacturer SST for $284 million. (See: Microchip Technology to acquire Silicon Storage Technology for $284 million)
Under the deal Microchip will pay $2.85 per Silicon Storage share in cash, a 53.2-per cent premium to the closing price on 12 November 2009 or a 6-per cent premium to SST's stock on 2 February 2010.
Microchip said it will now offer $3 for each Silicon Storage share, a premium of 11.5 per cent to its closing price on $2.69 on 2 February 2010, the day before the companies announced the merger.
In November 2009, SST had agreed to merge with Technology Resource Holdings, controlled by Prophet Equity LP, but terminated the merger agreement prior to entering into the definitive agreement with Microchip because of its higher offer.
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.
