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Shares of Exar (NYSE: EXAR) gained 24.4% in March 2017, according to data from S&P Global Market Intelligence.
As March drew to a close, Exar received a firm buyout offer from rival semiconductor designer MaxLinear (NYSE: MXL). The stock immediately surged 22% higher on the news, and is now trading right in line with MaxLinear's final all-cash offer of $13 per share.
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The two mixed-signal chip designers look like a strong match. When the deal closes, Exar's product line will gain economies of scale from MaxLinear's larger market presence. The acquirer picks up instant exposure to Exar's core markets, which are power management and interface solutions. MaxLinear investors will appreciate that the Exar combination is expected to boost the bottom line from day one. Exar investors should probably take their assets off the table and invest elsewhere, because the stock is not likely to make any further moves.
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