Image source: Lattice Semiconductor.
Shares of Lattice Semiconductor (NASDAQ: LSCC) have surged today, up by 19% as of 11:30 a.m. EDT, after the company announced that it is being acquired.
Private equity fund Canyon Bridge Capital Partners has agreed to acquire Lattice for $1.3 billion inclusive of net debt, which translates into an acquisition price of $8.30 per share. That represents a 30% premium relative to yesterday's closing price. Lattice CEO Darin G. Billerbeck said in a statement:
The news comes after months of exploring a potential sale. Lattice scored a major investment from a Chinese state-owned company earlier this year, following reports that Lattice was trying to sell itself. Meanwhile, the broader semiconductor space is seeing quite a bit of consolidation among larger companies as they look to cut costs to improve profitability. The deal has been unanimously approved by both companies' boards and should close in early 2017 following customary closing conditions and regulatory approvals. Lattice's senior management will continue to run the company as a stand-alone subsidiary.
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