Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Standard Microsystems (Nasdaq: SMSC) soared 38% on Wednesday after chip maker Microchip Technology (Nasdaq: MCHP) agreed to acquire the wireless technologist for about $830 million.

So what: The all-cash deal values Standard Microsystems at $37 per share and represents a juicy 41% premium to its closing price on Tuesday. Microchip is making the move to expand in the high-growth automotive and consumer electronics markets, and judging by its own stock's small bump today, Mr. Market doesn't see too many problems with the strategy.  

Now what: The acquisition is expected to close in the third quarter and should boost Microchip's earnings in the first full quarter after that. "We believe [Standard Microsystems'] smart mixed-signal connectivity solutions aimed at embedded applications are an ideal complement to Microchip's embedded control business," said Microchip President and CEO Steve Sanghi. So while Standard Microsystems shares are likely all popped out, Microchip Technology remains a highly rated stock worth looking into.  

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