Skyworks Solutions (SWKS) Scraps Bid to Acquire PMC-Sierra (PMCS)

Skyworks Solutions (NASDAQ: SWKS) announced that it decided not to modify its amended and restated merger agreement with PMC-Sierra, Inc. (PMC®) (NASDAQ: PMCS), entered into on October 29, 2015. Today PMC terminated the amended and restated merger agreement and, as a result, Skyworks is entitled to an $88.5 million termination fee from PMC.

Skyworks maintains a highly disciplined approach to the assessment of potential acquisition candidates, and at an increased valuation, PMC no longer meets Skyworks’ financial criteria.

Skyworks’ upwardly revised mid-term target operating model remains unchanged from the annualized non-GAAP earnings per share of $8.00 it provided on its Q4 FY2015 earnings conference call on November 5, 2015.

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