GigOptix Proposes To Acquire GSI Technology In Approx. $161 Mln Deal

(RTTNews) - GigOptix Inc. (GIG) announced it is proposing to acquire all of the outstanding shares of GSI Technology, Inc. (GSIT) for per share consideration of $6.50, consisting of (i) $2.00 per share in cash, (ii) GigOptix common stock worth $1.33 based upon the volume-weighted average price of GigOptix's common stock for the three trading days ending one day prior to the closing of the combination and (iii) a special dividend of $3.17 per share in cash payable by GSI Technology.

On a preliminary basis and subject to confirmatory due-diligence, GigOptix believes that the combination, which would have generated approximately $86 million in sales based on the reported revenue results over the most recent trailing twelve months for each company, would be immediately accretive on an adjusted EBITDA basis.