By Jim Harrison
Microchip Technology Incorporated has signed a definitive agreement to acquire Standard Microsystems Corporation (“SMSC”) for $37.00 per share in cash, which represents a total equity value of about $939 million, and a total enterprise value of about $766 million, after excluding SMSC’s cash and investments on its balance sheet of approximately $173 million. The acquisition has been approved by the Boards of Directors of each company and is expected to close in the third quarter of calendar 2012, subject to approval by SMSC stockholders, etc.
This seems like a good fit – product wise – we’ll have to wait and see about personality wise. SMSC has a lot of interface ICs USB, RS-232, etc. and some wireless technology that Microchip may have a big interest in. They also have Ethernet interface devices. Seems like a lot of money, but then what do I know.