Summary
Microchip Technology Incorporated (MCHP) filed an 8-K on April 4, 2016, to announce the successful completion of its acquisition of Atmel Corporation. This strategic move involved a merger where Atmel became a wholly owned indirect subsidiary of Microchip. The acquisition was structured with a mix of cash and stock, providing Atmel shareholders with $7.00 in cash and 0.0237 shares of Microchip common stock for each Atmel share. This transaction is a significant step in Microchip's growth strategy, aimed at expanding its product portfolio and market reach. The filing also noted that outstanding Atmel stock options were vested and automatically net-exercised, and all options with exercise prices above the merger consideration were cancelled. Microchip anticipates paying approximately $2.98 billion in cash and issuing roughly 10.1 million shares of its common stock as part of the merger consideration. The company also provided an update on its expected fourth fiscal quarter results ended March 31, 2016, in conjunction with the acquisition announcement.
Key Highlights
- 1Microchip Technology has successfully completed the acquisition of Atmel Corporation, effective April 4, 2016.
- 2The acquisition was structured as a merger, with Atmel becoming an indirect wholly owned subsidiary of Microchip.
- 3Atmel shareholders will receive $7.00 in cash and 0.0237 shares of Microchip common stock per Atmel share.
- 4Microchip expects to pay approximately $2.98 billion in cash and issue approximately 10.1 million shares of its common stock.
- 5All outstanding Atmel stock options were vested and automatically net-exercised upon the merger's completion.
- 6Options with an exercise price higher than the merger consideration were cancelled without any payout.
- 7The filing references an accompanying press release providing fiscal fourth quarter 2016 updates and details on the acquisition.