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Microsemi to buy time-keeper Symmetricom for $230M

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October 21, 2013 06:26 PM EST | AP


SAN JOSE, Calif. — SAN JOSE, Calif. (AP) — Microsemi Corp., which makes semiconductors for power management, said Monday that it agreed to buy atomic-clock technology provider Symmetricom Inc. for about $230 million.

Microsemi, which makes semiconductors for power management and security, said it will make a cash tender offer of $7.18 per share, a 51 percent premium over Symmetricom's closing price Monday.

The agreement lets Symmetricom shop for better offers through Nov. 8, and gives Microsemi the right to match a higher bid. Microsemi would also get termination fees, which were not detailed in a news release.

Microsemi said the deal would raise its earnings by between 22 cents and 25 cents per share in 2014.

The agreement was announced after the end of regular trading. Symmetricom shares had closed at $4.77, down 20 cents, or 4 percent. They jumped $2.38, or 50 percent, to $7.15 in after-hours trading. Microsemi shares fell 20 cents to close at $25.56 and were unchanged during the late session.

The Symmetricom board unanimously endorsed the sale. The San Jose-based company provides equipment used in GPS systems, power grids and other networks.