Integrated Device Technology (IDT) and GigPeak have signed an agreement for IDT to acquire GigPeak for a total cash consideration of $3.08 per share, valuing the deal at approximately $250 million. The acquisition of GigPeak will provide IDT with a highly regarded optical interconnect product and technology business that is complementary to IDT’s leadership position in real-time interconnect products.
GigPeak’s optical interface products are already used by service providers in the communications, Cloud, data centre, and military-aerospace markets. IDT says it will now be able to provide seamless ultra-high speed data connectivity solutions based on a combination of electrical, RF, and optical technologies.
Gregory Waters, IDT’s president & CEO, commented, “GigPeak provides high performance optical, RF, and video transport technology, and is a perfect fit for IDT. The products, technology, and culture of GigPeak all complement and represent an acceleration of our current strategy.”
Dr. Avi Katz, Founder, Chairman and CEO of GigPeak, commented, “Upon the completion of this acquisition, our leading product suite, which currently addresses the need for greater bandwidth across the network, will have the advantage of leveraging the scale of IDT’s resources and broad distribution channels.”
The Boards of Directors of both GigPeak and IDT have already approved the terms of the merger agreement, and GigPeak’s board has resolved to recommend that stockholders accept the offer, once it is commenced. The acquisition is structured as an all-cash tender offer for all outstanding issued common stock of GigPeak followed by a merger. Completion is anticipated during the second calendar quarter of 2017.