Integrated Device Technology to acquire Integrated Circuit Systems

Integrated Device Technology to acquire Integrated Circuit Systems

The two giants in the chip making business are joining hands as Integrated Device Technology has decided to acquire its rival in the industry Integrated Circuit Systems in a deal which is said to be worth around USD 1.7 billion. This news has sent the ICS Shares rising in the stock market by 13% in the morning trading.

The details are not very clear at this moment though the combined entity would be supplying chips to makers of communications gear, computers, and other electronic devices. The merger is expected to be completed this fall and would require approval from the shareholders and regulatory authorities.

The merged entity would retain the name Integrated Device Technology and will be primarily based in San Jose. As per the agreement, ICS stockholders will receive 1.300 shares of IDT common stock and $7.25 in cash for each share of ICS stock. Current position in the market puts the value of ICS at $1.7 billion, or $23.54 per share.