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Murata to spend $465M on Peregrine Semiconductor

August 22, 2014

The Associated Press

Murata Manufacturing Co. Ltd. will pay about $465 million to buy the remaining stake in fellow technology company Peregrine Semiconductor Corp. that it doesn't already own.

Shares of Peregrine soared Friday morning after Murata said it will pay $12.50 per share in cash for that remaining stake. The price represents a premium of about 63 percent to the stock's Thursday closing price of $7.69.

Peregrine, which is based in San Diego, develops high-performance radio frequency integrated circuits. It held an initial public offering of its stock in 2012.

Under the deal, Peregrine will become a subsidiary of Murata, which is based in Japan.

The boards of both companies have approved the deal, but Peregrine's shareholders still need to vote on it. The acquisition is expected to close by the end of this year or in early 2015.

Peregrine shares were up 61 percent, or $4.69, to $12.38 in late-morning trading. The stock had only advanced about 4 percent so far this year, as of Thursday.

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Source: Associated Press

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