Microsemi makes run at Zarlink Semiconductor

Microsemi Corp. (Nasdaq:MSCC) announced it has offered to buy Zarlink Semiconductor Inc. (TSX:ZL) for CAD $3.35 per share in cash. The total equity value of the deal would be USD $548.7 million based on a fully diluted share count

Microsemi Corp. (Nasdaq:MSCC) announced it has offered to buy Zarlink Semiconductor Inc. (TSX:ZL) for CAD $3.35 per share in cash. The total equity value of the deal would be USD $548.7 million based on a fully diluted share count.

The offer represents a 40 percent premium to Zarlink's share price as of July 19, 2011, and a 43 percent premium to Zarlink's trailing 30 day average share price, Microsemi asserts. It also exceeds every Zarlink closing share price over the last five years, the company added.

This is actually the third offer Microsemi has forwarded to Zarlink's board of directors. Zarlink management rejected the previous two without discussion – so Microsemi has decided to state its case publicly.

"We remain interested in engaging with Zarlink's board to complete a transaction that delivers value to shareholders," said James J. Peterson, Microsemi president and chief executive officer. "We are committed to building and strengthening its business, and believe our proposal provides a superior outcome for Zarlink's shareholders, employees, customers, and the local economy."

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