Boston, MA 04/28/2014 (wallstreetpr) – Microchip Technology Inc. (NASDAQ:MCHP) has executed their formerly broadcasted acquisition of Supertex Inc., a semiconductor manufacturer based in Sunnyvale, California, for $394 million.
Microchip, a Chandler-based provider of microcontrollers, signed a conclusive contract to acquire Supertex earlier this year, in February.
Supertex’s shareholders agreed upon the matter at a special meeting, with 98.4% voting in favor of the merger, according to Microchip’s spokespersons The Supertex shareholders will receive $33 per share in cash.
Steve Sanghi, the President and CEO of Microchip Technology Inc. (NASDAQ:MCHP) mentioned in February that the company had been following Supertex for more than a decade, and had purchased 5% of the company, several years ago.
Supertexis an “expert” in high-voltage analog technology, which permits, for example, a longer string of LED lights to function without having to connect it differently, Sanghi had stated previously. It is possible to string it much longer if the microchips at hand can carry a very high voltage. Supertex is without doubt, a significant addition to Microchip. Their pre-existing technology can take up to 60 volts, while Supertex’s technology can endure up to 1,000 volts. The companies aren’t producing the same products at this point of time, but access to their future products would be a significant plus in terms of shared technology.
Sanghi also mentioned that he was very pleased to have executed the acquisition of Supertex and that he welcomes Supertex’s employees into the Microchip family. He looks forward to developing a pooled organization that would harness the abilities of both organizations, to bear and utilize in the marketplace.
Citigroup Inc. reinstated buy rating on the shares of Microchip Technology in research publishing released on Tuesday morning.
Microchip Technology Inc. (NASDAQ:MCHP) had last released its earnings data on January 30. The company reported $0.61 EPS for the quarter, beating analysts’ consensus by a conservative number. The organization had revenue of $482.40 million for the quarter. Analysts expect that Microchip Technology will be likely to depict $2.42 EPS for the current fiscal year.
Microchip Technology Inc. (NASDAQ:MCHP) designs and produces specialized semiconductor products used by its clients for a range of embedded control functions and applications.
