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Stifel Downgrades Micrel After Acquisition Agreement

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In a report published Friday, analysts at Stifel downgraded Micrel, Incorporated (NASDAQ: MCRL) from Buy to Hold. The company announced its Board's decision to accept the acquisition bid by Microchip Technology, Inc. (NASDAQ: MCHP).

Micrel's Board has agreed to be acquired by Microchip at $14 per share, which represents total equity value of $839 million, with a total enterprise value of $744 million. The deal is likely to be closed in 3Q15. Microchip intends to acquire Micrel in order to expand its automotive, industrial and communications businesses.

Micrel's shareholders have the option to receive either cash or Microchip's common stock in return for their shares in the former company.

Micrel was founded 37 years ago by Ray Zinn, who has also been the president and CEO of the company since it was established. The company has had a good run, with consistent profitability for 36 of the 27 years it has been in existence. It has become one of the most recognized and respected brands in the analog semis segment.

"The company also has a reputation financial transparency, maintaining pristine P&L and balance sheet over the years. It is one of the first semiconductor companies to start report financial results on a GAAP basis," the analysts said.

Latest Ratings for MCRL

DateFirmActionFromTo
May 2015UpgradesEqual-WeightOverweight
May 2015DowngradesBuyHold
Dec 2014MaintainsBuy

View More Analyst Ratings for MCRL
View the Latest Analyst Ratings

Posted-In: StifelAnalyst Color Downgrades Analyst Ratings

 

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