STMicroelectronics pays $336m for Genesis

STMicroelectronics announced today it has reached definitive agreement to acquire Genesis Microchip for approximately $336m.

Under the terms of the agreement, STMicroelectronics will commence a cash tender offer to purchase all the outstanding shares of Genesis Microchip for $8.65 per share.

The offer price represents a premium of 60 per cent to Genesis Microchip's closing share price on Monday, 10 December 2007 and 26 per cent to the average closing share price during the last 60 trading days prior to this announcement.

Following completion of the tender offer, STMicroelectronics said it will complete a second-step merger in which any remaining common shares of Genesis Microchip will be converted into the right to receive the same per share price paid in the tender offer.

The acquisition has been approved by the board of directors of Genesis, which has unanimously recommended that holders of Genesis Microchip's common stock accept the tender offer and approve the second-step merger.

Through this acquisition, STMicroelectronics said expects to expand its position in the $1.5bn digital TV market, one of the fastest growing segments in consumer semiconductors.