Microsemi to buy atomic clock equipment maker Symmetricom

Reuters

Oct 21 (Reuters) - Power-management chipmaker Microsemi Corp said it would buy atomic clock equipment makerSymmetricom Inc for about $230 million.

Microsemi's offer of $7.18 per share is a premium of 50percent to Symmetricom's closing price on Monday.

Symmetricom's shares rose to $7.19 in extended trading,indicating that some investors expect a higher offer.

Microsemi Chief Executive James Peterson said the companyaimed to accelerate the adoption of Symmetricom's chip-scaleatomic clock (CSAC) technology into broader markets.

Symmetricom's precise timekeeping technologies are used inGPS satellites, national time references and power grids.

Its CSAC technology provides the accuracy and stability ofatomic clock technology while reducing size, weight and powerconsumption.

Symmetricom may solicit superior proposals from thirdparties for a "go shop" period through Nov. 8, Microsemi said.

Microsemi, whose chips provide higher computing power usingless energy, said it expects the acquisition to add 22-25 centsto its profit per share in 2014.

Jefferies LLC is Symmetricom's financial adviser and Latham& Watkins LLP is its legal adviser. Morgan Stanley advisedMicrosemi and O'Melveny & Myers LLP is its legal adviser.

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