Semiconductor company Microchip Technology has signed a definitive agreement to acquire Silicon Storage Technology (SST), a provider of memory and non-memory products, for $2.85 per share.
Silicon Storage said that it has terminated the its previously announced merger agreement with Technology Resources Holdings (TRH), prior to its agreement with Microchip.
The $2.85 per share in cash represents an approximate 35.7% premium to the amount that the holders of SST common stock would have received under the previously announced merger agreement between SST and Technology Resources, Microchip said.
Steve Sanghi, president and CEO of Microchip, said: “SST’s Superflash technology and extensive patent portfolio are critical building blocks for advanced microcontrollers. This acquisition enables Microchip to gain earlier access to SST’s advanced technologies, as well as the ability to customise technology variants that can give us an advantage over competing technologies.
“We believe this is an attractive transaction for SST’s stockholders, as it presents a significant premium to the prior transaction and requires no external financing.”
The acquisition has been approved by the boards of directors of both the companies and is expected to close in the second quarter of calendar 2010, subject to approval by SST’s stockholders and other customary closing conditions.