The American chip manufacturer MaxLinear will buy the Taiwanese company Silicon Motion Technology for almost four billion dollars (93.4 billion crowns). This will create one of the largest suppliers of chips without a manufacturing plant in the world, Reuters reported.
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MaxLinear will pay $ 93.54 and 0.4 of its shares in cash per ADS Silicon Motion voucher per share, equivalent to a total price of $ 114.34 per ADS. The bid is 41 percent higher than Wednesday’s ADS Silicon Motion final price.
The agreement is likely to be finalized in the first half of next year. The value of the merged company will be about eight billion dollars and MaxLinear shareholders will own an 86 percent stake in it. The combined company’s revenues are expected to be more than two billion dollars a year.
The merged company will be a chip company called fabless. These are companies that design, test and sell chips under their own brand or for other brands but do not own a manufacturing plant. Instead, they outsource production to other manufacturers, such as TSMC, Globalfoundries or UMC. Fabless companies include AMD, Qualcomm, Nvidia, Apple, Rambus and MediaTek. In the past, chip companies also owned manufacturing plants. Some, such as Intel and Texas Instruments, still have them.
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