Microchip Technology to buy Taiwan's bluetooth designer ISSC for $328.5 mn

Microchip Technology Inc today struck a deal to buy Taiwan's ISSC Technologies Corp, in a deal that values the Taiwanese bluetooth technology company at about $328.5 million.

Microchip is offering to pay $4.74 per share, a premium of 16.7 per cent to ISASC's yesterday closing price. After deducting ISSC's $34.2 million cash at hand, the deal is valued at $294.3 million.

ISSC is a fab-less Bluetooth designer offering single-chip Bluetooth most-updated compliant solutions for mono headsets, stereo headsets, car kits, speakers, mouse, keyboards, game controllers, home healthcare equipment and MFi adjunct solutions.

ISSC was founded in 1999 and is listed on the Taiwan GreTai Securities Market.

"This transaction represents the first major overseas acquisition by Microchip ............  We believe the combination of a very strategic transaction that provides low power Bluetooth technology, ISSC's strengths and capabilities and our use of foreign cash makes this a compelling transaction for the shareholders of both companies," said, Steve Sanghi, Microchip's president and CEO.

Microchip Technology is an Arizona-based manufacturer of microcontroller, memory and analog semiconductors.

A 1987 spin-off from General Instrument microelectronics division Microchip was acquired in 1989 by a group of venture capitalists, and went public in 1993.