Skyworks snaps up Advanced Analogic at lower price

Reuters News
Posted: Nov 30, 2011 10:39 AM
Skyworks snaps up Advanced Analogic at lower price

(Reuters) - Radio frequency chipmaker Skyworks Solutions said it will buy smaller rival Advanced Analogic Technologies for $5.80 per share in cash, a price lower than the original offer, ending a standoff between the two companies.

Skyworks, which agreed to buy Advanced Analogic for $6.05 per share in cash and stock in May, had threatened to walk in September saying it was not given access to certain financial information.

The latest offer, which values Advanced Analogic at about $257 million, is at a premium of 34 percent to the stock's close on Tuesday on Nasdaq.

Skyworks intends to start a tender offer within seven business days and will finance the offer with cash on hand, the two companies said in a joint statement.

Last week, Reuters reported quoting sources that Skyworks' tough posturing was just a ploy to grab Advanced Analogic at a lower price as the economy had turned tougher since the deal was signed.

As part of the deal, the companies also agreed to voluntarily dismiss the claims against each other in a Delaware court.

Shares of Skyworks were up 10.3 percent at $16.01 and Advanced Analogic shares were trading at $5.75 up 33 percent, on Wednesday on Nasdaq.

(Reporting by Rachana Khanzode in Bangalore; Editing by Hezron Selvi)