Lattice Semiconductor To Buy Silicon Image In $600 Mln Cash Deal - Quick Facts

(RTTNews) - Lattice Semiconductor Corp. (LSCC) agreed Tuesday to acquire Silicon Image, Inc. (SIMG) in an all-cash tender offer of $7.30 per share, representing an equity value of about $600 million or an enterprise value of about $450 million.

The offer price represents a 34.6 percent premium to the average closing price over the last 90 trading days and a 23.7 percent premium to the closing price of $5.90 on Monday.

The companies have identified annual synergies of at least $32 million, which are expected to be realized within one year after the closing of the transaction. The deal is also expected to be immediately add to Lattice Semiconductor's adjusted earnings per share.

The deal, which is unanimously approved by the boards of directors of both companies, is expected to close by the end of March 2015.

The deal will be funded by Silicon Image through a combination of cash on hand and new debt financing. The company has received a financing commitment of $350 million from Jefferies Finance LLC. The proposed transaction is not subject to a financing condition.

Lattice Semiconductor is a leading provider of programmable connectivity solutions, while Silicon Image is a leading provider of wired and wireless connectivity solutions.