Atmel targeted by Microchip/ON Semi approach
Microchip is looking to buy Atmel in a deal which values the latter company at $2.3billion. The deal, being led by Microchip, will be partly financed by the sale of Atmel’s nonvolatile memory and rf and automotive businesses to ON Semiconductor for an undisclosed sum.
According to Steve Sanghi, pictured, Microchip’s ceo, and Keith Jackson, ON Semi’s ceo, Atmel’s 18month old transformation is ‘incomplete and continues to face significant execution risks and obstacles’.
“We believe your stockholders are aware of, and fully appreciate, these risks and challenges confronting Atmel’s current course and will find the certain value we are offering for their shares to be an attractive alternative to the otherwise uncertain future facing Atmel,” they note in a letter to Atmel president and ceo Steven Laub.
