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MCHP snatches ATML

Don Dingee

New member
Microchip pays $3.6B to get Atmel, who jilts Dialog Semiconductor at the altar for a termination fee of $137M. With a recent dive in Dialog stock, Atmel investors fared better in the new deal, and Atmel CEO Steven Laub sees more opportunity for upside with Microchip.

http://www.nytimes.com/2016/01/20/business/dealbook/microchip-technology-to-buy-atmel-for-nearly-3-6-billion.html

The last line is an attention-getter:

"The deal is estimated to create $170 million in cost savings and revenue growth in the year that begins April 1, 2018."

Is Microchip-Atmel a better fit than Dialog-Atmel would have been? It creates a power in 8-bit MCUs, and takes Microchip from a MIPS-based line into ARM territory for 32-bit MCUs with Atmel's high end. It also combines two leaders in touch sensing chips, and gives Microchip a much stronger Arduino footprint.

Merging sales forces and channels is always interesting, probably why expectations are being set for two years of acquisition integration before accretion.
 
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