Shares in microchip maker PMC-Sierra (NASDAQ:PMCS) advanced this morning on Wall Street after Microsemi Corp (NASDAQ:MSCC) outbid Skyworks Solutions (NASDAQ:SWKS) with a US$2.2bn takeover offer.
Microsemi’s attempt to gazump Skyworks is pitched at US$11.50 per share.
Skyworks tabled US$2bn in an earlier attempt to buy PMC-Sierra, which makes chips for telecoms networks.
James Peterson, Microsemi's chief executive, said the US$2.2bn transaction offers “compelling strategic and financial benefits”.
“This acquisition will provide Microsemi with a leading position in high performance and scalable storage solutions targeted for data center and cloud applications, while also adding a complementary portfolio of high-value communications products,” Peterson added.
“Microsemi has a strong track record of integrating acquisitions and driving profitability, and we will benefit from increased scale, industry-leading margins, diversified market exposure, consolidated infrastructure and substantial cost savings in a combination with PMC."
In New York, shares in PMC-Sierra gained US$1.47 or 14.36% to trade at US$11.71 each. At the same time Microsemi Corp moved down about 3% to US$36.20 while Skyworks shares were largely unmoved at US$79.53.