Diodes buys Pericom

cashIn further signs of consolidation in the semiconductor industry, US firm Diodes said it is buying Pericom Semi in a deal worth around $400 million.

Diodes makes discrete, logic and analogue semiconductors while Pericom supplies connectivity and timing products.

Pericom’s board of directors said the deal, if it gains approval, will produce a company with revenues of around a billion and gross profits of £337 million.

Diodes said that the acquisition will strengthen its analogue business and add a mixed signal connectivity string to its semiconductor bow.

The transaction is expected to be approved in the fourth quarter of this year but there’s already a potential snag.

US law firm Johnson & Weaver has launched an investigation into whether the board of Pericom breached their fiduciary duties. It claims that it will investigate on whether Diodes is paying enough for Pericom and whether it had sought alternatives to the acquisition.