PMC-Sierra had a $2 billion bid for its business by Skyworks Solutions but that’s been trumped by semiconductor firm Microsemi, which has now offered to pay $2.2 billion for the firm.
PMC-Sierra sells chips into different sectors including embedded computing, storage and comms. It was founded in 1984.
Microsemi wants to expand its business into storage for data centres and cloud applications, and believes the acquisition of PMC-Sierra will help it do just that.
Microsemi appears to have succeeded in its bid for PMC-Sierra, with the bid expected to close by the end of this year.
According to Reuters, Morgan Stanley is putting up the money for the acquisition, which will result in Microsemi owning 85 percent of the company.