MaxLinear Clears US Antitrust Hurdle in Acquisition of Silicon Motion.
MANews-(C)2009-2022
The expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with respect to an agreement under which US-based radio frequency, analog and mixed-signal integrated circuits MaxLinear, Inc. (NASDAQ: MXL) will acquire Taiwan-based Silicon Motion (NASDAQ: SIMO), the company said.
This is a cash and stock transaction in which each American Depositary Share of Silicon Motion Technology Corp., which represents four ordinary shares of Silicon Motion Technology Corp., will receive USD 93.54 in cash and 0.388 shares of MaxLinear common stock, and each ordinary share of Silicon Motion Technology Corp. will receive USD23.385 in cash and 0.097 shares of MaxLinear common stock.
The expiration of the HSR waiting period occurred at 11: 59 p.m. ET on June 27, 2022, which was a condition to the closing of the pending transaction.
The closing of the transaction is subject to the satisfaction of the remaining customary closing conditions, including approval by Silicon Motion Technology Corp.'s shareholders and the receipt of regulatory approval in the People's Republic of China, among other things.
The strategic business combination is anticipated to drive transformational scale, create a diversified technology portfolio, significantly expand the combined company's total addressable market, and create a highly profitable cash generating semiconductor leader.
Upon completion of the acquisition, the combined company will have a highly diversified technology platform with strong positions across the broadband, connectivity, infrastructure, and storage end markets.
The combination of MaxLinear's RF, analog/mixed-signal, and processing capabilities with Silicon Motion's market leading NAND flash controller technology completes a total technology stack which fully captures end-to-end platform functionality and accelerates the company's expansion into enterprise, consumer, and many other adjacent growth markets.
Combined revenues are expected to be more than USD 2bn annually and are supported by the technology breadth to address a total market opportunity of roughly USD 15bn.
The combined scale is expected to provide additional technology, resources, and capabilities to accelerate product innovation, improve operational efficiency and drive lower manufacturing costs.
Together, MaxLinear and Silicon Motion will have expanded resources to better support the combined company's broad customer...
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