Murata to acquire Peregrine Semiconductor

Murata Electronics North America and Peregrine Semiconductor have announced that they have entered into a definitive agreement under which Murata will acquire all outstanding shares of Peregrine not owned by Murata for $12.50 per share in cash, or a total transaction value of around $471 million.

Peregrine is the founder of RF SOI (silicon on insulator) and pioneer of advanced radiofrequency solutions. The company is a leading provider of RF front-end (RFFE) solutions for mobile and analog applications. Upon closing of the transaction, Peregrine will become part of Murata’s strategy to expand its core business. Peregrine will become a wholly owned subsidiary of Murata and continue with its current business model of solving the world’s toughest RF challenges.

The acquisition will deliver to Murata advanced RFFE capabilities and the world’s best silicon on insulator (SOI) process technology, key areas for the growing integration of mobile technologies. The radio requirements of smartphones and other wireless devices continue to grow more complex. This complexity can only be solved with silicon technology. Peregrine supplies many wireless markets, including: smartphones, test and measurement, automotive, public safety radio and wireless infrastructure. Peregrine will also provide Murata with a strong portfolio of intellectual property rights (IPR) covering the entire RF SOI front-end.

The transaction, which has been approved by both companies’ boards of directors, is expected to close by the end of 2014 or early 2015, subject to Peregrine’s stockholders’ approval, regulatory approvals and other customary closing conditions.