Why Silicon Image Is Having A Big Day
Shares of Silicon Image, Inc. (NASDAQ: SIMG) soared over 20 percent on Tuesday following an announcement that Lattice Semiconductor Corporation (NASDAQ: LSCC) will acquire the company for $7.30 per share, or approximately $600 million.
The joint-press release cited key benefits of the deal, including increased strategic relevance benefiting customers, revenue expansion opportunities, a stronger IP portfolio and economies of scale.
At least $32 million in annual synergies are expected within one year, and the transaction is expected to be immediately accretive on a non-GAAP basis, according to the press release.
Darin G. Billerbeck, Lattice Semiconductor’s President and Chief Executive Officer, said:
“This is a truly transformative event for both Lattice Semiconductor and Silicon Image. For the first time in the semiconductor industry, a single company will combine the design flexibility and time to market benefits of FPGAs, with the highly integrated, function and cost optimization benefits of ASSP solutions.”
Shares of Lattice Semiconductor (NASDAQ: LSCC) also benefited from the news, and recently traded at $7.19, up 9.10 percent.
On January 9, reports surfaced that Silicon Image, Inc. was exploring a sale, which promoted the shares to rise temporarily above the $6.00 level.
The stock recently traded at $7.29, up 23.56 percent.
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