Reginal Thomas
0
All posts from Reginal Thomas
Reginal Thomas in reginal thomas,

Diodes To Acquire Pericom Semiconductor for $400 million

Diodes Inc, a chipmaker, is buying Pericom Semiconductor Corp for $400 million in order to boost its analog and mixed signal chip unit. Shares for Pericom rose 37.4% to $16.73 on Thursday in morning trading, but didn’t reach Diodes’ offer of $17 per share. Shares for Diodes are also up 5.7%.

The semiconductor industry has been consolidating in recent months, due to strong demand for cheaper chips and newer products to power Internet connected products.

Pericom manufactures connectivity, timing and power management chips used in cars, telecom networks and other devices. Diodes said it would pay for the deal through its existing credit facility, which is recently increased by $200 million.

The deal is expected to close by the end of 2015 and immediately add to Diodes’ earnings, according to the two firms in a statement.