Microsemi Offers To Acquire PMC-Sierra In $2.4 Bln Deal, Reaffirms Q4 Outlook

(RTTNews) - Microsemi Corp. (MSCC) Monday announced a cash and stock proposal of $11.50 per share to acquire PMC-Sierra Inc. (PMCS), worth $2.4 billion. The offer represents a premium of around 50 percent to the closing price on October 5. Microsemi expects the acquisition to create immediate accretion with more than $0.60 earnings per share in first full year.

Microsemi offer includes $8.75 in cash and 0.0735 share of Microsemi stock at the close of transaction. The deal offer has an enterprise value of $2.2 billion.

Further, Microsemi reaffirmed its fourth quarter adjusted earnings per share in a range of $0.72 to $0.74 and revenue of around $328 million.

On October 5, Skyworks Solutions Inc. (SWKS) has offered to acquire PMCS for about $2 billion in cash. As per the offer PMC-Sierra's stockholders will receive $10.50 in cash for each share at closing. The offer price represented a 37 percent premium to PMC's closing stock price as of October 5, 2015. Microsemi said its offer is superior to Skyworks'.