Chip maker Microchip plans to acquire Supertex for $394 million

Chip maker Microchip Technology Inc (MCHP) announced that it has agreed to acquire high-voltage analog and mixed-signal chip maker Supertex Inc. for $394 million in cash to strengthen its supply to the medical, LED lighting, industrial and telecommunications industries.

Under the agreement, Microchip will pay $33 per share of Supertex shares, a 35% premium to the stock's closing price of $24.38 on Friday.

The transaction is expected to be completed in the second quarter of this year. Microchip expects to improve its adjusted earnings per share in the first quarter after the transaction is completed.

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