Microsemi to Buy PMC-Sierra In Deal Valued at About $2.5 Billion

  • Monthlong bidding war ends after Skyworks withdrew its offer
  • Agreement adds to record $90 billion in global chip deals
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Microsemi Corp. fell the most in seven months after agreeing to buy PMC-Sierra Inc. for about $2.5 billion, ending a monthlong bidding contest with Skyworks Solutions Inc. for the maker of semiconductors for network drives.

Microsemi will pay $9.22 in cash and 0.0771 of a share of its common stock for each PMC common share, the company said in a statementBloomberg Terminal Tuesday. The terms represent a 77.4 percent premium to PMC’s closing stock price on Sept. 30.