The U.S. Federal Trade Commission on Tuesday said it would seek to block a proposed $330 million purchase of PLX Technology Inc by Integrated Device Technology Inc, saying the combined firm would have a near-monopoly on certain computer components. Both companies make integrated circuits called PCIe switches, which perform critical connectivity functions in computers and other widely used electronic devices."The combination of IDT and PLX would hurt competition and lead to higher switch prices, lower innovation in the marketplace, and reduced customer service," said Richard Feinstein, director of the FTC's Bureau of Competition.The combined firm would have a share exceeding 85 percent in the global PCIe switch market, the commission said.Headquartered in San Jose, California, IDT makes a range of semiconductor components used in communications, computing, and consumer applications. It proposed buying PLX, headquartered in Sunnyvale, California, in April.
Manufactures very large-scale integrated circuits that utilize enhanced complementary metal oxide semiconductor (CMOS) technology. Shares of IDTI traded higher by 1.54% or $0.105/share to $6.92. In the past year, the shares have traded as low as $4.60 and as high as $7.52. On average, 1743490 shares of IDTI exchange hands on a given day and today's volume is recorded at 1601302.
PLX Technology, Inc. (PLX) is engaged in designing, developing, manufacturing, and selling integrated circuits that perform critical system connectivity functions. Shares of PLXT fell by 1.53% or $-0.07/share to $4.50. In the past year, the shares have traded as low as $2.66 and as high as $6.71. On average, 328816 shares of PLXT exchange hands on a given day and today's volume is recorded at 242780.
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