Murata Electronics and Peregrine Semiconductor Corporation (PSMI) announced today that they have entered into a definitive agreement under which Murata will acquire all outstanding shares of Peregrine not owned by Murata, for $12.50 per share in cash, or a total transaction value of $471M, or $465M excluding Murata’s existing holding. The transaction is expected to close by the end of 2014 or early 2015, subject to Peregrine’s stockholders’ approval, regulatory approvals, and other customary closing conditions.
From a valuation-measure perspective ; PSMI currently has a P/E to growth ratio of -6.28. Price/Sales t12 ratio is at 1.31 while EPS for the same period registers at $-0.40. The company has a market cap of $257.05 million and a median Wall Street price target of $7.50 with a high target of $11.00. Currently there are 2 analysts that rate PSMI a ‘Buy’, and 8 rate it a ‘Hold’.
Profitability-wise, Peregrine Semiconductor’s t-12 profit margin currently stands at -9.57% while operating ones are at -8.25%. The company reported $45 million in cash vs. $0 in debt in its most recent quarter.
PSMI is up 62% pre-market at $12.43, within a new 52-week range of $4.75 to $12.43. The stock has lost 28% year-over-year and gained almost 4% year-to-date.
Peregrine Semiconductor Corporation provides various radio frequency integrated circuits worldwide. The company was founded in 1990 and is headquartered in San Diego, California.