CHANDLER, Ariz. — Microchip Technology is buying mixed signal
semiconductor maker Supertex for approximately $246 million, helping to expand
the chipmaker’s presence in the medical, lighting and industrial markets.
Microchip Technology Inc. of Chandler, Ariz., will pay $33 per share in cash, a 35 percent premium
to Supertex Inc.’s Friday closing price of $24.38.
Shares of Supertex, based in Sunnyvale, Calif., jumped $8.60, or 35.3 percent, to $32.98 in morning trading
Both companies’ boards unanimously approved the acquisition. It needs approval
from Supertex shareholders. The transaction value excludes about $148 million in
cash and investments on Supertex Inc.’s balance sheet, the companies said.
“Supertex’s deep domain knowledge in high voltage analog and mixed signal
technologies and strong position in the medical, industrial and lighting markets
complement many of Microchip initiatives in these areas,” Microchip Technology
President and CEO Steve Sanghi said in a statement announcing the deal on
The transaction is expected to close in the second quarter. The acquisition is
expected to add to Microchip Technology’s adjusted earnings per share in the
first full quarter after the transaction closes.