Philips acquires VLSI Technology for more than $1bn

Philips acquires VLSI Technology for more than $1bn
Tom Foremski
Philips has reached an agreement to acquire US based VLSI Technology for $21 per share, upping its earlier offer of $17 per share and ending a hostile bid.
The cash deal is valued at more than $1bn and includes the assumption of $160m in debt. The agreement follows a decision by Philips to halt its attempts to oust VLSI’s board of directors in return to access to confidential company data.
Arthur van der Poel, Chairman of Philips Semiconductors, said, “We are pleased to have been able to work out a negotiated transaction with VLSI at a price that is fair to the shareholders of both companies. After reviewing non-public VLSI information and meeting with VLSI management, we have concluded there is additional value in the company. VLSI has exactly the technology, know-how and people in place to help further the strategy of Philips Semiconductors.”
Philips says that VLSI is key to the expansion of its North American operations and says there is considerable synergy between the two companies plans and products.

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