(Beijing, China) – Canadian semiconductor company Semtech (SMTC) confirmed that it is in talks with Canadian networking company Sierra Wireless (SW.T) to acquire the latter for $31 per share. The offer represents a 4.4 percent premium to Sierra’s stock closing price of $29.70 on Monday. Sierra’s market capitalization was $1.14 billion as of Monday’s close.
Sierra shares surged 19.4 percent Monday after reports that the company and Semtech are in “advanced” takeover talks and could announce a deal within days.
Semtech said Tuesday that there was no guarantee a deal would be reached, and Semtech said it would not make any other announcements about the talks unless an agreement was reached.
Semtech shares have fallen 34.3 percent this year through Monday, while Sierra shares have soared 68.6 percent and the S&P 500 has fallen 13.6 percent.
