Maxim Integrated Products To Buy Volterra Semiconductor For $605 Mln

(RTTNews) - Analog chipmaker Maxim Integrated Products, Inc. (MXIM) said Thursday that it has agreed to acquire power-supply chipmaker Volterra Semiconductor Corp. (VLTR) for an equity value of about $605 million. Maxim noted that the acquisition of Volterra will enhance its position in the integrated power management segment. Shares of Volterra are gaining more than 9 percent in pre-market trades.

Under the deal, Maxim will buy Volterra's shares for $23 per share, representing a 55 percent premium to Volterra's closing stock price of $14.80 per share on Wednesday. The transaction has an enterprise value of $450 million, net of Volterra's cash position of about $155 million.

Fremont, California-based Volterra develops and markets silicon solutions for low-voltage power delivery. The company develops highly integrated power management solutions primarily for the enterprise, cloud computing, communications, and networking markets. According to Databeans, the $9 billion power management market is currently the largest and fastest-growing product segment in the analog market.

San Jose, California-based Maxim offers a portfolio of products for power conversion - switching regulators, linear regulators, charge pumps, digital Point-of-Load or POL converters, and power management integrated circuits, primarily in medium-to-low current applications. Maxim noted that Volterra's high-current technology will enable it to expand its position in this growing segment of the analog market.

Tunç Doluca, Maxim's President and Chief Executive Officer said, "Maxim Integrated is known for its highly integrated solutions. With Volterra, we will strengthen our position in the enterprise and communications markets."

Maxim expects the transaction to close early in the December quarter and be immediately accretive to its earnings per share, excluding items.

MXIM closed Wednesday's regular trading session at $28.74, down $0.07 on a volume of 1.79 million shares.

VLTR closed Wednesday's trading at $14.80. In Thursday's pre-market, the stock is up $1.36 or 9.19 percent to $16.16.