Microsemi, Zarlink, semiconductor, analog, mixed-signal Microsemi offers $549 million to buy Zarlink

LONDON – Analog and mixed signal chip company Microsemi Corp. has announced that it has made a third offer to acquire Canadian mixed-signal chip company Zarlink Semiconductor Inc., this time worth $548.7 million.  

Microsemi (Irvine, Calif.) said two previous offers were rejected by Zarlink (Ottawa, Ontario). The latest cash offer of C$3.35 per share is worth $548.7 million based on a fully diluted share count and represents a 40 percent premium to Zarlink's share price as of July 19, 2011, and a 43 percent premium to Zarlink's trailing 30 day average share price, Microsemi said.

Microsemi said it has sent a letter to Zarlink;s board of directors setting out its latest proposal, after several earlier attempts to engage in discussions. Zarlink had rejected previous written proposals of C$3.25 and C$3.55 per share.

"We remain interested in engaging with Zarlink's board to complete a transaction that delivers value to shareholders," said James Peterson, Microsemi president and chief executive officer, in a statement. "We are committed to building and strengthening its business, and believe our proposal provides a superior outcome for Zarlink's shareholders, employees, customers, and the local economy."

Zarlink recently appointed Gary Tanner to lead the company as CEO and reported fourth fiscal quarter revenue of $54.8 million, at the high end of $51.0 million and $55.0 million guidance range. On that revenue the company made a net income of $17.0 million.


Related links and articles:

Microsemi buys startup to expand security

Microsemi acquires mixed-signal IC vendor

Who are the analog takeover targets?

Zarlink tips 5% job cuts on 'strong' results

Zarlink appoints CEO to replace Mandy



Microsemi, Zarlink, semiconductor, analog, mixed-signal Microsemi offers $549 million to buy Zarlink