GigPeak Inc (NYSEMKT:GIG) recorded revenue of $58.7 million, a jump of 45% over the revenue of $40.4 million in FY2015. The company has finalized a definitive deal to be bought in an all cash deal by Integrated Device Technology, Inc. for cash consideration of $3.08 a share, or almost $250 million in cash, comprising various amounts and expenses compensated to directors and employees.
Under the terms of the deal, IDT will initiate a cash tender offer for all unpaid shares of GigPeak for $3.08 a share in cash. This deal consideration would showcase a premium of almost 22% to GIG closing stock price on February 10, and an almost 30% premium to its previous 9-month mean trading price as of February 10.
The deal has been unanimously sanctioned by the board of both firms, with closing anticipated during 2Q2017, and GigPeak board has resolved to suggest that stockholders accept the proposal, once it is initiated. Due to the reported definitive deal with Integrated Device, GigPeak will not be keeping the previously reported conference call to discuss its financial report for the fourth quarter.
Dr. Avi Katz, the CEO, Chairman and Founder of GigPeak, reported that FY2016 was a transformative year for company and closed in the best annual and quarterly financial performance in the firm’s history. They considerably enhanced the product portfolio during this year with the acquisition of Magnum Semiconductor. This deal considerably expanded the addressable markets the company serve, mainly cloud connectivity, which comprise the broadcast and network divisions, and further expanded revenue stream.
Additionally, it increased client base and led additional cross-selling prospects to prevailing customers. In FY2016, they also released numerous new devices to support next-gen data center message links, and advanced optical ASICs.
In the last trading session, the stock price of GigPeak surged over 12% to close at $3.05.