Microchip to buy Silicon Storage Technology

microchiplogoChandler, Ariz. — Microchip Technology Inc. is acquiring Silicon Storage Technology, Inc. (SST), giving the company access to SST’s SuperFlash technology and extensive patent portfolio. The transaction will be completed early in the second quarter of 2010.

Microchip, a manufacturer of microcontroller and analog semiconductors, has signed a definitive agreement to acquire SST, a manufacturer of memory and non-memory ICs, for $2.85 per share in cash. The acquisition has been approved by the Boards of Directors of each company and is subject to approval by SST’s stockholders and other customary closing conditions.

SST announced prior to the merger agreement with Microchip that it had terminated its previously announced merger agreement with Technology Resources Holdings.

“This acquisition enables Microchip to gain earlier access to SST’s advanced technologies, as well as the ability to customize technology variants that can give us an advantage over competing technologies,” said Steve Sanghi, president and CEO, at Microchip, in a statement.