SAN FRANCISCOGennum Corp. said Thursday (April 30) it won't match the roughly $100 million deal that Integrated Device Technology Inc. (IDT) offered earlier this week to acquire Tundra Semiconductor Corp.
The announcement by Gennum (Burlington, Ontario, Canada) likely paves the way for the IDT-Tundra deal to go through. IDT announced Thursday that it signed a definitive agreement with Tundra to acquire the company for Cdn$6.25 per share, or roughly Cdn$120.8 million ($100 million). The transaction must be approved by two thirds of Tundra shareholders at a special meeting in June.
IDT Tundra made public its offer Monday. The bid trumped the offer made by Gennum, which was increased to about $92.3 million April 17.
Gennum and Tundra originally signed a definitive merger agreement in March which called for Tundra to be acquired by Gennum for Cdn$4.43 per share, or roughly $70.8 million.
On Thursday, Gennum declined to exercise its right under the agreement to match the offer made by IDT.
"After careful and thoughtful consideration, we believe our latest proposal to acquire Tundra represents our best assessment of the value it could bring to Gennum," said Franz Fink, Gennum president and CEO, in a statement.