Commenting on the announcement Microchip Technology's President and CEO, Steve Sanghi said that Micrel's portfolio of linear and power management products, LAN solutions and timing and communications products, as well as their strong position in the industrial, automotive and communications markets, would complement many of Microchip's initiatives in these areas.
"We believe that combining Micrel's business with Microchip's business will enable significant synergies and cross selling opportunities," he explained.
Micrel shareholders will be able to choose whether they receive the purchase price in either cash or shares of Microchip common stock.
The deal has been unanimously approved by both boards and it is expected to close in Q3 2015.
