Sep. 17, 2015, 10:17 AM
- Networking/telecom SRAM maker GSI Technology (GSIT +0.7%) has rejected a $6.50/share cash/stock acquisition proposal from optical component/telecom ASIC vendor GigOptix (GIG +2.3%).
- GigOptix originally offered to buy GSI in Aug. 2014. With GSI's current market cap ($96M) higher than GigOptix's ($76M) - at the buyout priced, GSI would be valued at $147M - a deal would effectively amount to a reverse merger.
Aug. 19, 2014, 9:18 AM
- 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.