Semtech to acquire Sierra Monolithics
SMTC | Quote | Chart | News | PowerRating -- Semtech Corporation, a supplier of analog and mixed-signal semiconductor products, has entered into a definitive agreement to acquire Sierra Monolithics, Inc., a provider of analog integrated circuits and solutions for a wide array of communications systems and applications, for $180 million. Both the parties are based in the US.
Under terms of the agreement, Semtech will pay the stockholders of Sierra $180 million in cash and also assume the existing unvested options of Sierra's employees valued at approximately $8 million at the closing. In addition, Semtech will grant equity incentives up to $12 million in value to Sierra's employees at closing.
Morgan Stanley & Co., Incorporated and Paul, Hastings, Janofsky & Walker LLP are acting as financial and legal counsel to Semtech, , respectively. Jefferies & Company, Inc. and Morrison & Foerster LLP are acting as financial and legal counsel to Sierra Monolithics, respectively.
Deal Value (US$ Million) 200
Deal Type Acquisition
Sub-Category Majority Acquisition
Deal Status Announced: 2009-11-18
Deal Participants
Target (Company) Sierra Monolithics, Inc.
Acquirer (Company) Semtech Corporation
Deal Rationale
The acquisition complements Semtech's leadership positions in high performance protection, power management, industrial wireless and timing synchronization platforms and adds an additional, high growth revenue stream to its portfolio of growth engines. The transaction also positions both the companies to capitalize on some of the growing market segments in the communications and industrial segments.
Sierra's focus on providing solutions to the core communications infrastructure and leading edge defense markets enhances Semtech's value proposition to major customers in these markets.
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