February 27, 2018 / 6:49 AM / 6 months ago

Microchip Technology in talks to buy Microsemi: source

(Reuters) - Chipmaker Microchip Technology (MCHP.O) is in talks to buy Microsemi Corp MSCC.O, the largest U.S. commercial supplier of military and aerospace semiconductor equipment, a source familiar with the matter said on Tuesday.

The potential deal will value Microsemi at mid-$60s per share and a deal could be struck as early as this week, the source told Reuters.

Microsemi has a market capitalization of $7.55 billion, based on the stock’s Monday close.

The company was exploring its options, including a possible sale, after it received a takeover approach, Reuters reported last month.

The deal, if finalized, comes amid a new wave of consolidation in the semiconductor industry.

Broadcom Ltd (AVGO.O) on Monday had called a proposal by U.S. semiconductor peer Qualcomm Inc (QCOM.O) for a new meeting to negotiate an increase to Broadcom’s $117 billion acquisition offer “engagement theater” aimed at dodging a takeover battle.

Arizona-based Microchip purchased fellow chipmaker Atmel in January 2016 for $3.42 billion in cash and stock.

Microchip and Microsemi did not respond to request for comments outside regular business hours.

The Wall Street Journal reported earlier Microchip is nearing a deal to buy Microsemi.

Reporting by Mekhla Raina in Bengaluru and Liana Baker in San Francisco; Editing by Gopakumar Warrier

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