Credit: Shutterstock photoMicrochip Technology Inc.MCHP , a leading provider of semiconductor products, recently announced that the shareholders of Atmel Corporation ATML have approved the merger agreement between the two companies.
This transaction is expected to close today. Microchip announced that its average closing price over the past 10 trading sessions ending Apr 1, 2016, was $48.44. Per the terms of the merger agreement, and given this price, Microchip will issue roughly 10.1 million shares to Atmel shareholders. For each Atmel share being exchanged, its shareholders will receive $7 in cash and $1.15 of Microchip common stock.
A conference is likely to be hosted by Microchip to announce the closure of the agreement and further details are expected to be revealed during this conference.
Headquartered in San Jose, CA, Atmel designs, develops, manufactures and sells integrated circuit (IC) products worldwide. Atmel has one of the industry's most extensive portfolios of technologies for Internet of Thing applications, including ultra-low power microcontrollers, wireless connectivity, sensor hub and security IP.
Microchip is one of the fastest growing providers of 16-bit and 32-bit microcontrollers in the world. The microcontroller business of the company continued to outperform the industry and enabled it to gain significant market share. Microchip expects to continue this momentum and strengthen its position as the best-performing microcontroller franchise. The company continues to make strategic mergers and acquisitions to broaden its product portfolio.
The merger with Atmel is a case in point. It will enable Microchip to expand its contacts with various global customers. The combined expertise of the two companies will help the enlarged entity to get an edge over its peers. This in turn will help in expanding product offerings.
Microchip presently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the industry worth looking into are Semtech Corporation SMTC and Inphi Corporation IPHI . Both sport a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
