Microchip buys SST in cash deal
Microchip calls the flash maker?s technology and patent portfolio "critical building blocks for advanced microcontrollers."
By Suzanne Deffree, Managing Editor, News -- EDN, February 3, 2010
Microchip Technology Inc has signed a definitive agreement to acquire flash maker Silicon Storage Technology Inc (SST) for $2.85 per share in cash.
The move comes after SST in November 2009 announced it would merge into private equity company Technology Resources Holdings Inc (TRH). SST announced today that it had terminated that agreement following the expiration of the notice period granted to TRH under the merger agreement.
Today’s deal with Microchip represents an approximate 35.7% premium to the amount that the holders of SST common stock would have received under the SST and TRH agreement for $2.10 per share, and an approximate 53.2% premium to the closing price per share of SST’s stock on November 12, 2009, the last day of trading prior to the announcement of the execution of the agreement with TRH. The $2.85 per share buy also represents a 5.9% premium on SST’s Tuesday stock closing price of $2.69.
“SST’s Superflash technology and extensive patent portfolio are critical building blocks for advanced microcontrollers,” said Steve Sanghi, Microchip’s president and CEO, in a statement. “This acquisition enables Microchip to gain earlier access to SST’s advanced technologies, as well as the ability to customize technology variants that can give us an advantage over competing technologies.”
The acquisition is expected to close in Q2.
