Shares of San Diego-based Peregrine Semiconductor Corp. rose 60 percent early Aug. 22 on news that Japan-based Murata Manufacturing Co. Ltd. planned to buy the company for $471 million.
With its cash offer of $12.50 per share, Murata offered stockholders a 63 percent premium on their Peregrine (Nasdaq: PSMI) shares, which closed Aug. 21 at $7.69. While the transaction is valued at $471 million, Murata already has a small stake in the company, so the Japanese company’s net cost will be $465 million.
Shares of PSMI were trading at $12.36 at 10:48 a.m. Aug. 22, up 61 percent from their closing price.
Peregrine makes microchips for radio-frequency uses. Its silicon-on-sapphire manufacturing technology is one of several in the silicon-on-insulator category. Peregrine holds more than 180 filed and pending patents. It recently shipped its 2 billionth chip.
The San Diego business, founded in 1990, commercialized technology developed at the Naval Ocean Systems Center, the navy lab on Point Loma that was since renamed Space and Naval Warfare (Spawar) Systems Center Pacific.
Murata Electronics North America Inc., part of Kyoto-based Murata, announced that it entered into the definitive agreement to buy Peregrine shortly after at 5 a.m. Aug. 22. The parties expect the deal to close by the end of this year or early 2015, subject to Peregrine stockholder approval, regulatory approvals and other customary closing conditions. The parties expect Peregrine to become a wholly owned subsidiary of Murata.