Maxim Integrated Products, Inc. announced it has entered into a definitive agreement to acquire Volterra Semiconductor Corp. for $23 per share, which represents a 55 percent premium to Volterra Semiconductor’s closing share price on August 14, 2013. The transaction value is approximately $605 million equity value or $450 million net of Volterra’s cash position of approximately $155 million.
Volterra is a provider in high-current, high-performance, and high-density power management solutions. The company develops highly integrated solutions primarily for the enterprise, cloud computing, communications, and networking markets. Volterra’s portfolio of highly integrated products enables better performance, smaller form factors, enhanced scalability, improved system management, and lower total cost of ownership.
"Maxim Integrated is known for its highly integrated solutions. With Volterra, we will strengthen our position in the enterprise and communications markets," said Tunç Doluca, Maxim’s president and chief executive officer. "We add a very talented team and leading-edge proprietary technology in high-current power management solutions, which further diversifies our business model."
"This is an attractive transaction for our employees, customers, and investors," said Jeffrey Staszak, Volterra’s president and chief executive officer. "The Volterra team will build upon Maxim’s scale and market leadership to expand our ability to deliver innovative and differentiated products to our customers.”
At $9 billion, power management is currently the largest and fastest-growing product segment in the analog market, according to Databeans. Maxim offers a broad portfolio of products for power conversion: switching regulators, linear regulators, charge pumps, digital Point-of-Load (POL) converters, and Power Management Integrated Circuits (PMICs), primarily in medium-to-low current applications.
Pending regulatory approvals, Maxim’s acquisition of Volterra is expected to close early in the December quarter.