Microchip Technology to acquire Standard Microsystems for $939 million

Microchip Technology Inc yesterday said that it would acquire wireless technology company Standard Microsystems Corp (SMSC) for about $939 million, in order to access the automotive and consumer entertainment markets.

Founded in 1971, SMSC is a developer of Smart Mixed-Signal Connectivity solutions. The New York-based company was one of the pioneers in the chip industry and specialised in computer networking products.

The company that has luxury carmakers, including BMW, Audi and Daimler as its clients, makes microcontrollers that provides connectivity of audio and video between devices attached to cars.

Its products include USB, MOST automotive networking, Kleer and JukeBlox wireless audio, embedded system control and analog solutions, including thermal management and RightTouch capacitive sensing.
 
Microchip Technology will pay $37.00 per share in cash - a total equity value of about $939 million and an 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 both companies and is expected to close in the third quarter of 2012.

Chandler, Arizona-based Microchip Technology is a provider of microcontroller, analog and Flash-IP solutions, offering low-risk product development, lower system cost to more than 70,000 diverse customers worldwide.