Oct 21 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
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.