Microchip to acquire Atmel for $3.56 Billion
As per the deal, Microchip plans to repurchase the approximate number of shares it issues in the Atmel acquisition in the coming months.
It is also expected to result in the transaction having the accretive effects of a cash transaction from a financial perspective. Under the agreement, the transaction is expected to be immediately accretive to company’s non-GAAP earnings per share.
The company eyes an estimated $170 million in synergies from cost savings and incremental revenue growth in fiscal year 2019 that begins on April 1, 2018.
The Board of Directors of each company have given nod to the deal and is expected to close in the second quarter. The deal is subject to approval by Atmel’s stockholders, regulatory approvals and other customary closing conditions.
Meanwhile, approval by Microchip’s stockholders is not required in connection with the transaction. The transaction is not subject to any financing conditions.