Microchip Technology Inc. (MCHP) announced that it completed its acquisition of Silicon Storage Technology Inc. (SSTI) following approval of the transaction by Silicon’s shareholders.
Silicon Storage is a global leader in embedded flash technology and in the licensing of these technologies. It has several other businesses including serial, parallel and specialty flash memories.
Approximately 90.9% of SSTI shares voted were in favor of the merger agreement.
In early March, Microchip upped its offer for SSTI. Under the revised terms, Silicon Storage shareholders were entitled to receive $3.05 per share in cash compared to the previous offer of $3.00 per share (second amendment). This second amendment was in response to an offer made by another bidder to Silicon’s Strategic Committee on Mar 2, 2010.
The $3.05 per share offer represents an approximate 45.2% premium to the amount that the holders of Silicon Storage common stock would have received under its merger with Technology Resources Holdings Inc.
Management expects that Silicon’s proprietary SuperFlash technology is a critical building block for advanced microcontrollers. This acquisition secures critical embedded flash technology for Microchip’s core microcontroller business and will enable the company to get early access to advanced technologies instead of waiting for these to be produced in foundries.
The acquisition also adds a strong patent portfolio to Microchip’s intellectual offerings as it has over 360 granted patents and over 180 patents that are pending.
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