SAN FRANCISCOCommunications chipmaker Exar Corp. said Monday (Feb. 23) it has signed a definitive agreement to acquire security IC provider Hifn Inc. in a deal that could be worth as much as $59 million.
Under the terms of the agreement, Exar said it would acquire all of the outstanding shares of Hifn common stock pursuant to an exchange offer, followed by a second step merger.
In the exchange offer, expected as early as this week, Hifn stockholders will be able to elect to receive either 0.3529 shares of Exar common stock and $1.60 in cash for every share of Hifn, or $4 in cash.
Based on Hifn's outstanding share volume of 14.74 million, the deal could be worth almost $59 million in cash.
The boards of directors of both Exar and Hifn unanimously approved the agreement, according to Exar. The deal is subject to the approval of Hifn stockholders and is expected to close during the second quarter.
"The two companies have developed complementary technologies and share a common vision to deliver connectivity and storage solutions that are not only fast, but also efficient and secure," said Pete Rodriguez, Exar's president and CEO, in a statement.
Al Sisto, chairman and CEO of Hifn, will join the board of directors of Exar, the company said.