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UPDATE 1-Integrated Device Technology to buy PLX for $330 mln
April 30, 2012 / 9:10 PM / 6 years ago

UPDATE 1-Integrated Device Technology to buy PLX for $330 mln

* Deal at a premium of 76 pct over PLX’s Monday close

* PLX stockholders will get $3.50 in cash, 0.525 IDT shares

* PLX will get a “go shop” period for 30 days

* PLX shares up 69 pct, Integrated Device shares unchanged

April 30 (Reuters) - Analog chipmaker Integrated Device Technology Inc agreed to buy peer PLX Technology Inc for about $330 million, to expand its product portfolio and customer base.

The cash and stock offer of $7 a share is at a premium of 76 percent to PLX’s Monday closing price of $3.98.

As part of the deal, PLX stockholders will get $3.50 in cash and 0.525 common shares of IDT for each outstanding share, the companies said in a joint statement.

PLX Technology designs and develops integrated circuits that are used by companies that sell electronic systems in the server, enterprise storage, and communications markets.

IDT expects the deal to add to adjusted earnings by the third fiscal quarter of 2013 with more significant addition by fiscal 2014.

The deal is expected to close in the first fiscal quarter of 2013.

PLX will get a “go shop” period for 30 days to solicit superior proposals, the companies said.

JP Morgan advised IDT On the deal, while Deutsche Bank was the adviser to PLX.

Separately, Integrated Device also acquired Fox Electronics for $30 million in an all-cash transaction.

PLX shares are up 69 percent in trading after the bell on Friday on the Nasdaq. Integrated Device shares closed at $6.77.

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