Zarlink Semiconductor Inc. (TSE:ZL) (PINK:ZARLF) said the company got invited to the 2011 Medical Electronics Symposium. Despite the news, their share price remained locked around its new 52-week high which was hit after the company entered into an acquisition agreement.
Zarlink announced on September 26 that the company was invited to a discussion on new packaging technologies used to scale down the dimensions of electronic components used in implanted and on-body medical devices. Zarlink will be visiting the 2011 Medical Electronics Symposium on Sept. 27-28.
The news had no effect on the share price since its currently locked tight by a pending acquisition. ZL went up 13.9% last Thursday and the price is holding around the same level now, leaving only small volatility for possible scalping.
The price shot up after Zarlink entered into a support agreement with Microsemi Corp. (NASDAQ:MSCC). The company agreed to an acquisition proposal and will be bought by Microsemi for C$3.98 per share. The current value of the acquisition is $525 million, net of ZL’s cash of $107 million.
The deal was made after Microsemi agreed to raise their offer price from an initial C$3.35 per share. As always, the transaction will have to be approved by the shareholders and the exchange.
Microsemi Corporation engaged in creation of semiconductor solutions for a wide area of applications – aerospace, defense, enterprise, communications, industrial and alternative energy markets. Zarlink Semiconductor offers mixed-signal fabless semiconductors for the communications and medical markets
Microsemi needed this expansion seeing how their quarterly earnings dropped from $33 million to $30.6 million year over year, despite a solid 59% increase in revenues.
