NEWPORT BEACH, Calif. (AP) -- Chip maker Conexant Systems Inc. said Wednesday that it reached a definitive agreement to be acquired by private equity firm Golden Gate Capital for $197 million.
As a result, Conexant has terminated its earlier agreement to be bought by larger rival Standard Microsystems Corp.
Golden Gate Capital will pay $2.40 apiece for all of Conexant's outstanding shares.
Golden Gate Capital outbid Standard Microsystems, which agreed last month to acquire Conexant for $2.25 per share in cash and stock. Conexant announced Tuesday that the competing offer from an affiliate of Golden Gate Capital was "superior" to the Standard Micro bid.
Earlier Wednesday, Standard Micro said it wouldn't increase its offer price for Conexant.
Conexant will pay a $7.7 million fee to Standard Microsystems for terminating their previous agreement.
Golden Gate Capital's purchase of Conexant is expected to close in the second quarter of 2011. The purchase is subject to regulatory approval and approval by Conexant's shareholders.
The definitive agreement came after the market close Wednesday. The stock fell 18 cents, or 7 percent, to close at $2.34. Standard Microsystems, based in Hauppauge, N.Y., gained 20 cents in after-hours trading after closing at $24, up 61 cents.
As a result, Conexant has terminated its earlier agreement to be bought by larger rival Standard Microsystems Corp.
Golden Gate Capital will pay $2.40 apiece for all of Conexant's outstanding shares.
Golden Gate Capital outbid Standard Microsystems, which agreed last month to acquire Conexant for $2.25 per share in cash and stock. Conexant announced Tuesday that the competing offer from an affiliate of Golden Gate Capital was "superior" to the Standard Micro bid.
Earlier Wednesday, Standard Micro said it wouldn't increase its offer price for Conexant.
Conexant will pay a $7.7 million fee to Standard Microsystems for terminating their previous agreement.
Golden Gate Capital's purchase of Conexant is expected to close in the second quarter of 2011. The purchase is subject to regulatory approval and approval by Conexant's shareholders.
The definitive agreement came after the market close Wednesday. The stock fell 18 cents, or 7 percent, to close at $2.34. Standard Microsystems, based in Hauppauge, N.Y., gained 20 cents in after-hours trading after closing at $24, up 61 cents.