(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