Microchip Technology Inc (Nasdaq: MCHP) announced that its deal to acquire Atmel Corporation (Nasdaq: ATML) would close on April 4, 2016, after receiving shareholder approval. The cash and stock deal is worth approximately $3.2 billion. Atmel shareholders will be given $7 in cash and $1.15 of Microchip common stock.
The acquisition of Atmel will allow Microchip to expand its contacts with various customers around the globe. It will also enable Microchip to diversify its product offerings. Steve Sanghi, Chief Executive and President at Microchip, previously said, “As the semiconductor industry consolidates, Microchip continues to execute a highly successful consolidation strategy with a string of acquisitions that have helped double our revenue growth compared to our organic revenue rate over the last few years.” Qatalyst Group and JP Morgan acted as financial advisers on this deal. Shearman & Sterling provided legal counsel.