SAN JOSE — Maxim Integrated Products said Thursday that it reached a deal to buy fellow power management company Volterra Semiconductor for $575.3 million, combining two of Silicon Valley’s 150 largest tech companies.
Under the terms of the deal, Maxim will pay $23 per share for the company, which represents a 55 percent premium over Volterra’s Wednesday closing share price of $14.80.
The news sent Volterra shares up $8.11, or 54.8 percent, to $22.91. The stock has traded between $12.28 and $25.70 in the past 52 weeks, rebounding in recent months after falling steadily for more than a year.
Fremont-based Volterra makes low-voltage power-management chipsets for computers and networks. Maxim said the acquisition will boost its position in enterprise and communications markets.
As of Dec. 31, Volterra had 264 employees, according to the company’s annual report. Maxim did not say if it expects any layoffs, or detail the future of Volterra’s management.
Volterra posted net income for 2012 of $22.8 million, or 86 cents per share, up 11 percent from 2011. Revenue rose 8 percent to $168 million, making it the 127th largest tech company in Silicon Valley, according to Mercury News research.
Maxim said the deal has an equity value of about $605 million equity value, or $450 million excluding Volterra’s roughly $155 million in cash.
Maxim offers a variety of products for power conversion, including regulators, charge pumps, digital converters, and integrated circuits, mainly for medium- and low-voltage uses. The San Jose company reported net income for fiscal 2013, which ended June 29, of $454.9 million, up nearly 18 percent from the prior fiscal year. Revenue totaled $2.44 billion, up about 2 percent, putting the company at No. 32 on the SV150 list of the region’s largest tech firms.
Maxim said it expects the deal to close early in the December quarter, pending regulatory approvals.
Maxim shares slipped 98 cents to $27.76 as stocks took a beating overall Thursday on Wall Street. Shares have changed hands between $25.54 and $33.67 in the past 12 months.
Mercury News staff writer Jeremy C. Owens contributed to this report.
