Skyworks Solutions Inc (NASDAQ:SWKS), an innovator of high performance analog semiconductors connecting people, places and things, and PMC-Sierra, Inc. (PMC) (NASDAQ:PMCS), a semiconductor and software solutions leader in storage, optical and mobile networks, today announced that they have entered into an amended and restated merger agreement under whichSkyworks has agreed to acquire PMC for $11.60 in cash per share of PMC common stock, an increase from its previous agreement to acquire PMC for$10.50 in cash per share of PMC common stock. The amended and restated merger agreement also provides for an increase in the termination fee from $70.0 million to $88.5 million. All other material terms of the merger agreement previously announced on October 5, 2015, remain substantially the same.
Skyworks proposed the amended and restated merger agreement in response to Microsemi Corporation’s proposal to acquire PMC for $8.75 in cash and 0.0736 of a share of Microsemi common stock per share of PMC common stock.
The boards of directors of Skyworks and PMC have each approved the amended and restated merger agreement. PMC’s board of directors has determined that as a result of the amended and restated merger agreement with Skyworks, Microsemi’s proposal is not superior and recommends the amended and restated merger agreement with Skyworks to PMC stockholders.
As previously announced, Skyworks intends to fund the acquisition with cash on hand from the combined companies and with fully committed debt financing. The closing of the transaction is not subject to financing conditions. The transaction is expected to close in the first half of calendar 2016, subject to PMC shareholder approval, receipt of regulatory approvals and other customary closing conditions. (Original Source)
Shares of Skyworks Solutions closed yesterday at $74.63. SWKS has a 1-year high of $112.88 and a 1-year low of $55.31. The stock’s 50-day moving average is $83.02 and its 200-day moving average is $93.59.
On the ratings front, Skyworks has been the subject of a number of recent research reports. In a report issued on October 20, Drexel Hamilton analyst Cody Acree initiated coverage with a Buy rating on SWKS and a price target of $110, which represents a potential upside of 47.4% from where the stock is currently trading. Separately, on October 7, Brean Murray Carret’s Mike Burton maintained a Buy rating on the stock and has a price target of $100.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Cody Acree and Mike Burton have a total average return of 16.0% and 10.6% respectively. Acree has a success rate of 47.4% and is ranked #365 out of 3808 analysts, while Burton has a success rate of 55.8% and is ranked #382.
Overall, one research analyst has assigned a Hold rating and 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $115.50 which is 54.8% above where the stock closed yesterday.
Skyworks Solutions Inc, together with its consolidated subsidiaries is an innovator of high reliability analog and mixed signal semiconductors.