Skyworks Solutions has announced that it decided not to modify its amended and restated merger agreement with PMC-Sierra, Inc, which was entered into on October 29, 2015. Today PMC terminated the amended and restated merger agreement and, as a result, Skyworks is entitled to an $88.5 million termination fee from PMC. Skyworks had offered to acquire for PMC-Sierra for $10.50 per share in an all-cash transaction valued at approximately $2 billion. After this, Microsemi offered $2.4 Billion for the PMC-Sierra. Both these offeres were being evalauted by the PMC-Sierra Board of directors. On the 16th of November PMC-Sierra Reiterated its commitement to Skyworks, however things seem to have not worked out.
Skyworks maintains a highly disciplined approach to the assessment of potential acquisition candidates, and at an increased valuation, PMC no longer meets Skyworks' financial criteria.
Skyworks' upwardly revised mid-term target operating model remains unchanged from the annualized non-GAAP earnings per share of $8.00 it provided on its Q4 FY2015 earnings conference call on November 5, 2015.
