CHANDLER (dpa-AFX) - Microchip Technology Inc. (MCHP) announced that it has signed a definitive agreement to acquire Standard Microsystems Corp. (SMSC) for $37.00 per share in cash, which represents a total equity value of about $939 million, and a total enterprise value of about $766 million, after excluding SMSC's cash and investments on its balance sheet of approximately $173 million.
The acquisition has been approved by the Boards of Directors of each company and is expected to close in the third quarter of calendar 2012, subject to approval by SMSC stockholders, regulatory approvals and other customary closing conditions.
Microchip expects that the acquisition will be accretive to its non-GAAP earnings in the first full quarter after completion of the acquisition. The company said it looks forward to completing this transaction in the third calendar quarter of 2012.
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