Microchip Technology Buys Chip Maker Atmel In $3.56 Billion Deal

Microchip Technology Inc. said Tuesday it has agreed to buy Atmel Corp. for about $3.56 billion in a cash and stock deal that ends a bidding war for Atmel. Atmel had been courted since September by Dialog Semiconductor, but Dialog last week said it wouldn't increase its buyout offer. The deal with Microchip is expected to close in the second quarter. Shares of Microchip rose less than 1% in late trading Tuesday after ending the regular session up 2.9%; shares of Atmel declined 0.1% after ending the day up 0.8%.