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What: Shares of power amplifier specialist Skyworks Solutions (Nasdaq: SWKS) are powering up by as much as 12% after the company announced that it is acquiring Advanced Analogic Technologies (Nasdaq: AATI) at a lower price.
So what: Skyworks and Advanced Analogic had previously announced an acquisition deal in May valued at $6.13 per share, but the two were at an impasse over having access to certain financial information. Skyworks had threatened to walk away if it didn't get its way, and the announcement today shows that the two were able to settle their differences.
Now what: The amended merger agreement now carries a price tag of $5.80 per share in cash, as opposed to the cash and stock deal that came before it. Skyworks is using its available cash on hand to finance the $257 million deal without taking on any additional debt, as the company had roughly $410.1 million in cash and equivalents on the books recently. Investors are relieved to have the affair behind the company, as it could have turned into a drawn-out expensive legal battle.
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