Microsemi Increases Offer For PMC-Sierra

(RTTNews) - Microsemi Corp. (MSCC), has increased its proposal to acquire PMC-Sierra Inc (PMCS) in a cash and stock transaction.

Under the terms of Microsemi's proposal, PMC shareholders will receive $9.04 in cash and 0.0771x of a Microsemi common share for each PMC common share. The implied enterprise value is $2.3 billion, net of PMC's net cash balance as of Sept. 27, 2015.

Based on the closing stock price of Microsemi on Oct. 29, 2015, the transaction is valued at $11.88 per PMC share.

"Our revised proposal offers superior value to PMC's shareholders, and Microsemi is uniquely positioned to realize significant synergies," said James J. Peterson, Microsemi's chairman and CEO.

The transaction is expected to be immediately accretive to Microsemi's non-GAAP EPS and free cash flow. Microsemi anticipates achieving more than $100 million in annual cost synergies with greater than $75 million of those to be realized in the first full quarter of combined operations. Microsemi estimates approximately $0.60 of non-GAAP EPS accretion in the first full year after closing the transaction.