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Monday, January 10, 2011

SMSC to acquire Conexant; sees Q4 below Street, (NASDAQ: SMSC), (NASDAQ: CNXT)

Chipmaker Standard Microsystems Corp (SMSC.O) said it would acquire Conexant Systems Inc (CNXT.O) for about $284 million including debt, and forecast a fourth-quarter profit below market expectations. Under the terms of the deal, shareholders of the communications and network chipmaker Conexant will get $1.125 per SMSC share in cash and $1.125 in stock. The total cash consideration is about $98 million and SMSC will issue 2.9-3.6 million new shares, the company said.