Microchip Technology continues to expand its market reach
The microchip industry has been through drastic changes over the past couple of years. Microchip Technology, an Arizona-based manufacturer of microcontroller, memory and analog semiconductors, has been exceptionally active.
In 2014, the company bought Supertex, a manufacturer of high voltage analog and mixed signal integrated circuits, in a deal estimated at $394 million. Meanwhile, Microchip purchased Micrel, an international manufacturer of IC solutions, in a $839 million deal last May. This forward-moving market approach now continues as the company has recently chosen to acquire Atmel Corporation, a fellow designer and manufacturer of semiconductors, Leslie Picker wrote at The New York Times.
This deal is estimated at $3.6 billion, where many current stockholders will gain $8.15 a share through a combination of Microchip stock and cash, Hayley Ringle at Phoenix Business Journal explained. In order to proceed with the deal and ensure that its investors receive more through the acquisition, Atmel ended its previous deal with Dialog Semiconductor, a producer of semiconductor-based system solutions, and paid a fee of $137.3 million.
"Microchip and Atmel have a strong tradition of innovation, stretching across microcontroller, analog, touch, connectivity and memory solutions," Microchip COO Ganesh Moorthy said in a statement. "Joining forces and combining our product portfolios will offer our customers a richer set of solution options to enable innovative and competitive products for the markets they serve."
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