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Skyworks Solutions (NASDAQ:SWKS) rose in early trading after the Apple supplier said it would buy chipmaker PMC-Sierra for $2bn in cash to expand its portfolio.
PMC shareholders will received $10.50 per share, a 37% premium to Monday’s close of $7.69 on the Nasdaq.
The deal will add $0.75 per share to Skyworks’ earnings on an annual non-GAAP basis, the Woburn, Massachusetts-based company said in a statement late Monday.
The semiconductor industry has seen a wave of consolidation in recent years as chip makers have grown to keep pace with demand from clients and used mergers to trim costs by combining workforces.
Skyworks said it will fund the acquisition with cash on hand from the combined companies and other debt financing.
The deal is expected to close in the first half of next year.
Shares eased 3.88% to US$78.59.