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Technology Stocks : Silicon Motion Inc. (SIMO) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (2514)	5/5/2022 9:32:00 AM
From: Sam	1 Recommendation Recommended By Sr K Read Replies (1) \| Respond to of 2979

MaxLinear to Acquire Silicon Motion in $3.8 Billion Deal 08:45 AM EDT, 05/05/2022 (MT Newswires) -- MaxLinear(MXL) has agreed to acquire NAND flash controller developer Silicon Motion(SIMO) in a cash-and-stock deal valued at $3.8 billion, the companies said Thursday. The deal values the combined company at $8 billion in enterprise value. Under the proposed transaction, each American depositary share of Silicon Motion(SIMO), which represents four ordinary shares of Silicon Motion(SIMO), will receive $93.54 in cash and 0.388 shares of MaxLinear(MXL) common stock, for a total per ADS consideration of $114.34, according to a joint statement. The combined entity is expected to generate nearly $100 million in run-rate synergies within 18 months after the deal closes and be "immediately and materially accretive" to MaxLinear's(MXL) non-GAAP per-share earnings and cash flow. MaxLinear (MXL) shareholders will own about 86% of the combined company and Silicon Motion(SIMO) stockholders will own about 14%. MaxLinear (MXL) plans to fund the $3.1 billion of cash consideration with cash on hand from the combined companies and fully committed debt financing, the company said. Shares of MaxLinear(MXL) were down more than 13% in premarket activity while Silicon Motion(SIMO) jumped about 17%.