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Microchip Technology To Acquire Atmel For $8.15 Per Share, Notes Acquisition Is 'Latest Chapter Of Our Growth Strategy'

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Shares of Microchip Technology Inc. (NASDAQ: MCHP) were unchanged at $41.70 ahead of Wednesday's opening bell following the company's announcement that it has agreed to acquire Atmel Corporation (NASDAQ: ATML) for a total consideration of $8.15 per share.

Microchip noted its acquisition of Atmel values the company at $3.56 billion.

Microchip added that the transaction will be immediately accretive to its non-GAAP earnings per share. The transaction is also expected to achieve an estimated $170 million in synergies from cost savings and incremental revenue growth in fiscal 2019.

Atmel shareholders will receive $7.00 per share in cash and $1.15 per share in Microchip's stock.

"The Atmel acquisition is the latest chapter of our growth strategy and will add further operational and customer scale to Microchip,” said Steve Sanghi, President and CEO of Microchip.

"Microchip and Atmel have a strong tradition of innovation, stretching across microcontroller, analog, touch, connectivity and memory solutions. Joining forces and combining our product portfolios will offer our customers a richer set of solution options to enable innovative and competitive products for the markets they serve," said Ganesh Moorthy, COO of Microchip.

Posted-In: Acquisitions Atmel Ganesh Moorthy MICROCHIP Steve SanghiM&A News

 

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