PMC-Sierra surges after $2B bid from Skyworks

October 07 01:55 2015

Shares of chipmaker PMC-Sierra rose 33% Tuesday after it agreed to be acquired by Skyworks Solutions. In a deal announced Monday afternoon, Skyworks agreed to pay $10.50 per PMC-Sierra share in cash, or about $2 billion. The deal is expected to be completed in the first half of 2016.

Shares of PMC were up by $2.57 to $10.26 as of Tuesday afternoon. It was the most heavily traded stock of the day, with nearly 70 million shares changing hands. Skyworks, a semiconductor manufacturer based in Woburn, Mass., was down 4.5% to $79.03. The merger would generate about $75 million in savings, he said.

The acquisition was driven partly by Skyworks’ desire to boost its product lineup for customers who connect, transport and store Big Data, Skyworks CEO David Aldrich said, specifically citing PMC’s storage systems, flash controllers, optical switches and network infrastructure products.