Aliso Viejo-based chipmaker Microsemi Corp. said it is set to acquire a San Jose company that specializes in timing technology.
The cash tender offer for Symmetricom Inc. is $7.18 per share, or $230 million, and represents a 49% premium of the company’s common stock over 90 trading days through Oct. 18.
The deal, which each company’s board unanimously approved, is expected to close within the first three months of 2014. Microsemi projects the acquisition to add 22 cents to 25 cents in earnings in 2014.
Under the terms of the agreement, Symmetricom may solicit bids from third parties during a “go shop” period through Nov. 8.
If another buyer outbids Microsemi during the period and acquires Symmetricom, Microsemi will receive an undisclosed amount in termination fees.
Symmetricom’s time-keeping technology is used in military and public networks, GPS satellites and other technology. It targets various industries, including aerospace and IT infrastructure. The company has about 500 employees, primarily in San Jose and Massachusetts.
Symmetricom posted a $2.7 million loss on $210.9 million in revenue in the 12 months through June, the end of its fiscal year.
―Chris Casacchia
