UPDATE 1-Ixys to buy Zilog for $62.4 mln

* Offers $3.59 per Zilog share, a premium of 21 pct

* Zilog shares up as much as 20 pct

Dec 7 (Reuters) - Chipmaker Ixys Corp (IXYS.O) said it agreed to buy Zilog Corp ZILG.O for about $62.4 million in cash, to broaden its product portfolio.

Under the terms, Ixys will buy all outstanding shares of Zilog for $3.59 a share, which represents a premium of 21 percent over Zilog's Friday closing price of $2.96.

Zilog shares were up 19 percent at $3.51 in morning trade on Nasdaq, while those of Ixys were up 2 percent at $7.32.

The transaction is expected to close during the quarter ended March 31, 2010, Ixys said in a statement. (Reporting by Shrutika Verma in Bangalore; Editing by Pradeep Kurup)