Bulletin staff report
An Arizona technology firm announced Thursday it would buy Microsemi Corp., a California-based microchip maker with a production facility in Bend, according to a news release.
Microchip Technology Inc., of Chandler, Arizona, agreed to pay $68.75 per share to acquire Microsemi, or about $8.35 billion in equity. Taking Microsemi’s cash and investments into account, the deal is worth about $10.35 billion, according to Microchip.
Microchip plans to finance the transaction with $1.6 billion in cash, $3 billion in credit, $5 billion in new debt and $600 million in a cash bridge loan, the company release stated. J.P. Morgan is providing $5.6 billion in financing.
Microsemi petitioned the U.S. Department of Labor for Trade Adjustment Assistance last year, asking tuition assistance and stipends for workers in Oregon it expects will lose their jobs when work is moved to India, Ireland and other countries, according to The Bulletin archives. Microsemi partnered with the state of Oregon in the petition. Microsemi produces silicon microchips at its facility on SW Columbia Street, in Bend.
As many as 100 people there could lose their jobs when Microsemi closes that plant in 2020, according to The Bulletin in January. The Bend facility was slated to remain an engineering and design center.
The company was working with the East Cascades Workforce Investment Board to assist workers who may be laid off, according to The Bulletin archives.
Buying Microsemi is part of a strategy by Microchip to grow the company through acquisitions, according to the release.
The Microsemi acquisition is expected to close in the second quarter.
Microsemi closed at $64.30 a share, down 60 cents, Thursday, according to the Nasdaq Stock Market. It was gaining, however, in after-hours trading.