Microchip Technology Incorporated announced that it has completed the acquisition of Microsemi Corporation. All shareholders of Microsemi approved the merger of Microsemi shares with 99.5% of the pro-list.

“We are very pleased to have completed our acquisition of Microsemi,” said Steve Sanghi, CEO.  “I welcome the Microsemi employees into the Microchip family and look forward to working together to realize the benefits of a combined team pursuing a unified strategy.  The Microsemi acquisition will significantly enhance our product portfolio, end-market diversification, operational capabilities and customer scale.”

According to the terms of the merger agreement, Microsemi shareholders received $68.78 per share in cash for each share of Microsemi common stock.

According to estimates, this M&A transaction will increase Microchip’s non-GAAP earnings per share. Based on the information available at the moment, Microchip expects to achieve a synergy of approximately $300 million in the third year after the transaction closes. Microchip uses cash from the merged company’s balance sheet, Microchip’s existing credit lines for borrowing, new fixed-term loans of US$3 billion and newly issued high-grade guaranteed bonds of US$2 billion to finance the transaction.