GigOptix proposing to buy GSI Technology for $161M


GigOptix (NYSEMKT:GIG) is proposing to buy GSI Technology (NASDAQ:GSIT) for $161M, or ~$6.50/share. The price includes $2/share in cash, ~$1.33/share in stock (based on GigOptix's trading levels over the last 3 days), and a $3.17/share special dividend payable by GSI.

GigOptix asserts pairing its telecom RF component and ASIC offerings with with GSI's networking DRAM/SRAM ops can "create a world-class high-speed communication semiconductor business."

The deal is expected to close in calendar Q4. GigOptix believes it would be immediately accretive on an adjusted EBITDA basis.

GIG +12.8% to $1.50. GSIT +25.5% to $6.20.

This was corrected on 08/19/2014 at 09:31 AM.
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