-- MaxLinear Inc. is in talks to acquire fellow chipmaker Silicon Motion Technology Corp., according to people familiar with the matter.
If talks are successful, a deal could be announced in coming days, though the discussions could end without an agreement, the people said, asking not to be identified discussing confidential information.
Representatives for MaxLinear and Silicon Motion didn’t immediately respond to requests for comment.
Taiwan-based MediaTek Inc. is also interested in bidding for Silicon Motion, which is also based in Taiwan, the people added. A representative for MediaTek didn’t immediately respond to a request for comment.
Largest deal
Silicon Motion has been working with advisers and holding talks with potential suitors amid takeover interest, Bloomberg News reported in April. Its American depositary receipts have fallen 15% this year, giving it a market value of $2.8 billion.
If a deal is struck, it would be the largest to date for Carslbad, California-based MaxLinear, according to data compiled by Bloomberg. The company’s shares closed up 5.2% to $53.61 Wednesday, giving it a market value of about $4.1 billion. It makes chips used in broadband communications.
Silicon Motion makes NAND flash controllers for solid-state storage devices, according to its website. It also supplies data center and specialized industrial and automotive solid-state drives. The company reported net income of $60.6 million for the three months ended Dec. 31, a 9.4% increase from the third quarter. |
