By Lisa Kerner
Charlotte, N.C., Dec. 7 - IXYS Corp. agreed to acquire Zilog, Inc. for $3.5858 per share in cash, or approximately $62.4 million, it was announced on Monday.
The transaction is expected to close during the first quarter of 2010, subject to Zilog shareholder approval and other customary closing conditions, a joint news release from the companies said.
A $1.9 million termination fee payable by Zilog is included as part of the merger agreement, according to a form 8-K filed with the Securities and Exchange Commission.
According IXYS and Zilog, merging will enable the companies to "leverage analog power management with digital control."
In addition, the combination will allow IXYS and Zilog to pool research-and-development resources, leverage economies of scale, reduce manufacturing costs and streamline and integrate operational and support costs, the release said.
"Zilog has actively explored a broad range of strategic alternatives to enhance shareholder value," Zilog president and chief executive officer Darin Billerbeck said in the release. "The price that IXYS is proposing to pay is a premium to our current stock price, as well as a substantial premium to the average of the prices at which we've traded throughout 2009."
The price is a 21% premium to Zilog's closing stock price on Friday.
Zilog is a San Jose, Calif.-based supplier of application-specific, embedded system-on-chip products.
IXYS is a multi-market integrated semiconductor company located in Milpitas, Calif.
| Acquirer: | IXYS Corp.
|
| Target: | Zilog, Inc.
|
| Announcement date: | Dec. 7
|
| Transaction total: | $62.4 million
|
| Price per share: | $3.5858
|
| Termination fee: | $1.9 million
|
| Expected closing: | First quarter of 2010
|
| Stock price for target: | Nasdaq: ZILG: $2.96 on Dec. 4
|
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