Aug 15, 2013

Posted by in Featured, Stock Market News | 0 Comments

Most Active Runners: Maxim Integrated Products Inc. (NASDAQ:MXIM) and Volterra Semiconductor Corp. (NASDAQ:VLTR)

Most Active Runners: Maxim Integrated Products Inc. (NASDAQ:MXIM) and Volterra Semiconductor Corp. (NASDAQ:VLTR)

Maxim Integrated Products Inc. (NASDAQ:MXIM) decided to buy lesser fellow chip manufacturer Volterra Semiconductor Corp. (NASDAQ:VLTR) for almost $605 million, assisting Maxim develop its integrated power management products.

Maxim would pay $23 for every Volterra share, a premium of 55% over Wednesday’s ending price.

Volterra makes chips mainly for enterprise, cloud computing, communications and networking markets. Maxim reported that it anticipates the Volterra product portfolio to hike its leadership position in integrated power management. Maxim makes a wide range of chips that are utilized in industrial, communications, consumer and computing markets.

The agreement, which has a worth of $450 million net of Volterra’s cash position, is predicted to end in the December quarter. Maxim reported that it predicts the takeover would right away give advantage to per-share earnings, omitting special items.

The Volterra team would boost upon Maxim’s scale and market leadership to grow their ability to give innovative and differentiated products to their customers, Volterra President and CEO Jeffrey Staszak reported.

Maxim’s shares ended on Wednesday at $28.74, and were lower 2.2% in 2013. Volterra’s stock ended at $14.80, lower 14% so far this year and were inactive during premarket session on Thursday.

Comments are closed.