WOBURN, Mass. (AP) -- Semiconductor developer Skyworks Solutions Inc. has agreed to acquire fellow chip maker Advanced Analogic Technologies Inc. in a cash and stock deal worth about $262.5 million.
Advanced Analogic Technologies' shareholders will receive $3.68 per share in cash and .08725 of a share of Skyworks' common stock for each outstanding share of common stock in the Santa Clara, Calif.-based company. That amounts to $6.13 per share, or a 57 percent premium to Advanced Analogic's closing share price on Thursday of $3.90 per share.
Advanced Analogic's shares surged in aftermarket trading on the news, adding $2.03, or 52 percent, to $5.95.
Advanced Analogic makes energy-efficient analog semiconductors for the consumer electronics, computing and communications markets. The acquisition will expand Skyworks' portfolio with complementary products, such as battery chargers, voltage regulators and LED drivers, the company said.
David Aldrich, Skyworks' president and CEO, said the deal will allow the company to further capitalize on its position in the smart phone, tablet and set-top box markets, as well as enter new markets. The analog power management market is expected to grow to $12.1 billion in 2014, up from $9.9 billion in 2010 according to Gartner market research.
"Analog power management semiconductors represent a strategic growth market for Skyworks as our customers increasingly demand both ubiquitous wireless connectivity and power optimization across seemingly every kind of electronic platform," Aldrich said.
The transaction is subject to approval by Advanced Analogic's shareholders and regulatory clearance. Skyworks expects the purchase to immediately add to earnings, excluding one-time items.
Skyworks shares added 19 cents to close earlier at $27.03.