Microchip to buy Supertex for $394m

Microchip Technology has agreed to acquire Supertex in a deal valued at $394m.

Steve Sanghi, CEO Microchip

Steve Sanghi, CEO Microchip

This values the high voltage analogue and mixed signal company at about $246m, after excluding Supertex’s cash and investments on its balance sheet of approximately $148m.

“Supertex’s deep domain knowledge in high voltage analog and mixed signal technologies, and strong position in the medical, industrial and lighting markets, complement many of Microchip initiatives in these areas,” said Steve Sanghi, president and CEO of Microchip Technology.

“We believe that combining Supertex’s business with Microchip’s analog business will enable significant synergies and cross selling opportunities,” said Sanghi.

“We believe that this acquisition provides the opportunity to scale up to the much stronger sales and manufacturing platforms of Microchip” said Henry Pao, president and CEO of Supertex.

The acquisition is expected to be accretive to Microchip’s non GAAP earnings per share in the first full quarter after completion of the acquisition.

The acquisition has been unanimously approved by the boards of directors of each company and is expected to close in the second quarter of calendar 2014, subject to approval by Supertex’s stockholders, regulatory approvals and other customary closing conditions.

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