Integrated Device Technology and GigPeak today announced that they have signed a definitive agreement for IDT to acquire GigPeak, Inc., for total cash consideration of $3.08 per share, or approximately $250 million in cash. This per share consideration would represent a premium of approximately 22% to GigPeak's closing share price on February 10, 2017.

The acquisition of GigPeak provides IDT with a highly regarded optical interconnect product and technology business that is complementary to IDT's leadership position in real-time interconnect products.

GigPeak's optical interface products are already broadly used by leading companies in the Communications, Cloud Data Center, and Military/Aviation markets. IDT will now provide seamless ultra-high speed data connectivity products using electrical, RF, and optical technologies.

"GigPeak is a recognized leader in high performance Optical, RF, and Video Transport technology, and is a perfect fit for IDT. The products, technology, and culture of GigPeak all complement and represent an acceleration of our current strategy," said Gregory Waters, IDT President & CEO. "We gain an exceptional group of talented people and valuable intellectual property with the GigPeak team, and welcome them into one of the most innovative companies in the semiconductor industry."

"IDT's acquisition of GigPeak will be a meaningful milestone for all of our stakeholders -- stockholders, employees, customers and partners," said Dr. Avi Katz, Founder, Chairman and CEO of GigPeak, Inc. "We find an exceptional culture, customers, business and technology compatibility with IDT, and we are delighted to join this fine team. Upon the consummation of this acquisition, our leading product suite, which currently addresses the need for greater bandwidth across the network, will now have the advantage of leveraging the scale of resources and broad distribution channels of IDT."