Lattice Semiconductor (NASDAQ:LSCC) Joins the M&A Party in the Chip Industry

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Lattice Semiconductor (NASDAQ:LSCC) was swept higher in the tsunami of deal making surging through the chip industry, agreeing to be bought out by Canyon Bridge Capital Partners Inc., a private-equity firm backed by Chinese investors.

Lattice shares gained 18.52% Thursday to close at $7.55 on huge volume of 37.36 million shares. Compare that to Lattice’s average volume of 1.38 million shares.

The $1.3 billion deal will take Lattice private. Lattice is a maker of programmable chips.

Lattice Semiconductor (NASDAQ:LSCC) sold at 30% premium

After an extensive review that looked at a variety of strategic options, Lattice agreed to be acquired by Canyon Bridge Acquisition Company, Inc., an affiliate of Canyon Bridge Capital Partners Inc., for $1.3 billion inclusive of net debt, payable in cash at $8.30 per share.

“We are excited to leverage Canyon Bridge’s resources and market connections as we enhance our focus on executing our long-term strategic plan of continued innovation,” said Darin G. Billerbeck, President and Chief Executive Officer. “ Importantly, we will operate as a standalone subsidiary after the acquisition and do not expect any changes in our operations or our unwavering commitment to continued innovation for our customers.”

Billerbeck also said the transaction will deliver certain and immediate cash value to shareholders while reducing execution risk.

Ray Bingham, Founding Partner, Canyon Bridge, said he was attracted by Lattice’s low-power FPGA franchise, along with its video connectivity and wireless solutions all of which make it “a compelling, strategic investment.”

Earlier this year, in April, Tsinghua Unigroup, a subsidiary of Tsinghua Holdings, a Chinese state-owned company, acquired a 6% stake in Lattice, and currently holds 4.64%, according to Reuters.

Lattice Semiconductor (NASDAQ:LSCC) deal to go through federal security checks

The Committee on Foreign Investment in the United States (CFIUS), comprising the Treasury Department, Defense Department and other agencies, must approve any deal that has the potential to harm national security.

Lattice has confirmed that the deal is conditional upon CFIUS clearance and anti-trust approval in China.

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