MaxLinear's (NASDAQ:MXL) planned purchase of Silicon Motion Technology (NASDAQ:SIMO) is on track for a mid year close.
"Everything seems to be on track or moving as expected," MaxLinear CFO Steve Litchfield said at a Needham conference earlier on Tuesday. "Most of these deals are taking close to 12 months and that's why we set the time frame where it is and it seems to be playing out that way."
The comments come after a report in early November that China's state market regulator reportedly approved MaxLinear's (MXL) application for its offer to acquire Taiwan-based Silicon Motion (SIMO) for $3.8B in stock and cash. The companies first announced the deal in May.
In an exchange about the deal at the Needham conference, when Needham analyst Quinn Bolton asked Litchfield about "should" the deal close, Litchfield corrected the analyst and said "when" the deal closes.
MaxLinear (MXL) shares ticked up 0.2%, while Silicon Motion (SIMO) ticked down 0.2.%
Needham upgraded Silicon Motion (SIMO) to buy from hold in early November and said that he believed MaxLinear (MXL) would make concessions to China (i.e. customer prices and supply continuity) to help the deal get across the finish line.