Microchip decides to pay more to acquire Silicon Storage Tech

Microchip has now increased its earlier cash offer of $2.85 per share to $3.00 per share to acquire Silicon Storage Technology (SST). This decision was taken to keep another bidder out.

The acquisition is approved by the Boards of Directors of each company and is expected to close in the second quarter of calendar 2010, subject to approval by SST's stockholders and other customary closing conditions.

"We continue to be excited about this transaction and believe that it remains attractive for both parties for all of the financial and technological reasons that we earlier stated," said Steve Sanghi, President and CEO. "We're also pleased to add SST's talented employees to our team," continued Mr. Sanghi.

SST is known for offering NOR flash memory chips and 8051 compatible MCUs in small packages. SST also makes RF power amplifiers.

Microchip is gaining mainly on IP and patents related to flash memory.

For more details visit www.microchip.com, www.sst.com