Microsemi to buy atomic clock equipment maker Symmetricom

Mon Oct 21, 2013 5:18pm EDT

Oct 21 (Reuters) - Power-management chipmaker Microsemi Corp said it would buy atomic clock equipment maker Symmetricom Inc for about $230 million.

Microsemi's offer of $7.18 per share is a premium of 50 percent to Symmetricom's closing price on Monday.

Symmetricom's shares rose to $7.19 in extended trading, indicating that some investors expect a higher offer.

Microsemi Chief Executive James Peterson said the company aimed to accelerate the adoption of Symmetricom's chip-scale atomic clock (CSAC) technology into broader markets.

Symmetricom's precise timekeeping technologies are used in GPS satellites, national time references and power grids.

Its CSAC technology provides the accuracy and stability of atomic clock technology while reducing size, weight and power consumption.

Symmetricom may solicit superior proposals from third parties for a "go shop" period through Nov. 8, Microsemi said.

Microsemi, whose chips provide higher computing power using less energy, said it expects the acquisition to add 22-25 cents to its profit per share in 2014.

Jefferies LLC is Symmetricom's financial adviser and Latham & Watkins LLP is its legal adviser. Morgan Stanley advised Microsemi and O'Melveny & Myers LLP is its legal adviser.

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