CHANDLER, Ariz. (AP) -- Chip maker Microchip Technology Inc. is purchasing wireless technology company Standard Microsystems Corp. for about $828.8 million in a move to expand its product offerings.
Microchip Technology said Wednesday that it has agreed to pay $37 for each Standard Microsystems share. That is a 41 percent premium to the company's Tuesday closing price of $26.24. Both companies' boards have approved the deal.
Shares of Standard Microsystems gained $1.04, or 4 percent, to $27.28 in premarket trading on Wednesday.
New York-based Standard Microsystems currently has about 22.4 million outstanding shares, according to Fact Set.
Microchip Technology, which is based in Chandler, Ariz., said that the deal's total value is about $939 million, which includes approximately $173 million in cash and investments on Standard Microsystems' balance sheet.
The transaction is expected to add to Microchip's adjusted earnings in the first full quarter after the buyout closes.
The deal still needs approval from Standard Microsystems' shareholders. The companies expect deal to close in the third quarter.