Conexant spurns SMSC for Golden Gate Capital merger

Semiconductor supplier Conexant Systems, Inc. (NASDAQ:CNXT) has signed a new definitive merger agreement with Gold Holdings, Inc., an affiliate of San Francisco-based private equity firm Golden Gate Capital. The agreement leaves Standard Microsystems Corp. (NASDAQ:SMSC), with which Conexant had earlier agreed to merge, standing at the altar.

Under the new agreement, Gold Holdings will purchase all of the outstanding shares of Conexant common stock at a price of $2.40 per share in cash. This sum is more than twice the cash portion of the offer from Standard Microsystems, which was $1.125 per share plus a fraction of Standard Microsystems stock. The total per-share value of Standard Microsystems' offer was $2.25 (see "SMSC to acquire Conexant Systems").

The new transaction is expected to close in the second quarter of calendar 2011. It is contingent on the satisfaction of regulatory requirements, approval by Conexant stockholders, and other customary closing conditions. Conexant has paid Standard Microsystems a $7.7 million termination fee to get out of its original deal.

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