Microchip acquires Silicon Storage Technology

CHANDLER, USA: Microchip Technology Inc. announced that it has signed a definitive agreement to acquire Silicon Storage Technology Inc. for $2.85 per share in cash.

The $2.85 per share represents an approximate 35.7 percent premium to the amount that the holders of SST common stock would have received under the previously announced merger agreement between SST and Technology Resources Holdings Inc., and an approximate 53.2 percent premium to the closing price per share of SST’s stock on November 12, 2009, the last day of trading prior to the announcement of the execution of the definitive merger agreement with Technology Resources Holdings Inc.

As separately announced today by SST, SST has terminated its previously announced merger agreement prior to entering into the definitive agreement with Microchip.

The acquisition has been approved by the Boards of Directors of each company and is expected to close in the second quarter of calendar 2010, subject to approval by SST’s stockholders and other customary closing conditions.

“SST’s Superflash technology and extensive patent portfolio are critical building blocks for advanced microcontrollers,” said Steve Sanghi, President and CEO. “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.”

“We believe this is an attractive transaction for SST’s stockholders, as it presents a significant premium to the prior transaction and requires no external financing,” continued Sanghi. “We look forward to completing this transaction early in the second calendar quarter of 2010.”