Skyworks to buy Advanced Analogic for about $258.6 million

(Reuters) - Skyworks Solutions (SWKS.O) has agreed to buy smaller rival Advanced Analogic Technologies AATI.O for a deal valued at $258.6 million in cash and stock, as consolidation in the analog chips sector continues.

Woburn, Massachusetts-based Skyworks, expects to expand its portfolio of analog chips for battery chargers and LED drivers used in consumer electronics through the acquisition.

"Skyworks' acquisition of Advanced Analogic Technologies will enable us to further capitalize on our strong smart phone, tablet, set-top box," Skyworks Chief Executive David Aldrich said in a statement.

Skyworks will pay $3.68 a share in cash and 0.8725 of its common stock for each outstanding Advanced Analogic share, and expects the deal to add to the company's adjusted earnings immediately after its closing.

Based on Thursday's closing, the deal is worth $6.05 per Advanced Analogic share -- representing a 55 percent premium.

Last month, Texas Instruments TXN.N had agreed to buy analog chip giant National Semiconductor Corp (NSM.N) for $6.5 billion.

Analog chipmakers have long been the poor cousins of digital chip giants. But with the increasing demand for power management chips in battery-powered devices, they have seen a revival in fortunes in the last couple of years.

This is Skyworks' second buy in less than 10 days. It had acquired a privately held cellphone chipmaker for $210 million on May 17.

Skyworks shares fell slightly to $26.52 following the announcement, having closed at $27.03 on Thursday on Nasdaq.

Advanced Analogic Technologies shares were up 53 percent at $5.95 in extended trading. They closed at $3.90 on Thursday.

(Reporting by Himank Sharma in Bangalore; Editing by Joyjeet Das)