UPDATE: Integrated Device Tech (IDTI) to Buy PLX Tech (PLXT) for $7/Share in Cash, Stock
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(Updated - April 30, 2012 5:01 PM EDT)
PLX Tech (Nasdaq: PLXT) to be acquired by Integrated Device Technology (Nasdaq: IDTI) for $7 per share in cash and stock.
Under the terms of the agreement, unanimously approved by the boards of directors of both companies, IDT will acquire all of the outstanding shares of PLX common stock pursuant to an exchange offer, followed by a second step merger. In the acquisition, PLX stockholders will receive $3.50 in cash and 0.525 shares of IDT common stock for each PLX common share outstanding.
As a result of the combination, IDT anticipates it will achieve total run-rate cost synergies, excluding transaction related charges, in excess of $35 million by fiscal year 2014. IDT currently projects the transaction to be accretive to non-GAAP earnings by the third fiscal quarter of 2013 with more significant accretion by fiscal year 2014, in each case based on an assumed closing during the first fiscal quarter of 2013. Increased scale and expected cost savings are expected to lower combined non-GAAP operating expenses, generate significant operating margin expansion, and accelerate IDT's timing to achieving its stated target operating model.
PLX Tech (Nasdaq: PLXT) to be acquired by Integrated Device Technology (Nasdaq: IDTI) for $7 per share in cash and stock.
Under the terms of the agreement, unanimously approved by the boards of directors of both companies, IDT will acquire all of the outstanding shares of PLX common stock pursuant to an exchange offer, followed by a second step merger. In the acquisition, PLX stockholders will receive $3.50 in cash and 0.525 shares of IDT common stock for each PLX common share outstanding.
As a result of the combination, IDT anticipates it will achieve total run-rate cost synergies, excluding transaction related charges, in excess of $35 million by fiscal year 2014. IDT currently projects the transaction to be accretive to non-GAAP earnings by the third fiscal quarter of 2013 with more significant accretion by fiscal year 2014, in each case based on an assumed closing during the first fiscal quarter of 2013. Increased scale and expected cost savings are expected to lower combined non-GAAP operating expenses, generate significant operating margin expansion, and accelerate IDT's timing to achieving its stated target operating model.
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