An agreement for the acquisition of the Israeli microchip company Tower Semiconductor for 5.4 billion dollars, was signed by Intel, with the aim of further enhancing its production capacity in the midst of growing demand.
The acquisition price means that Intel will pay $ 53 per share of Tower, an amount significantly higher than the closing price of the company yesterday on the Nasdaq, at $ 33.13.
According to Reuters, the transaction is expected to be completed in about 12 months, having already been approved unanimously by the BoDs of both companies.
However, the agreement is still subject to certain regulatory approvals, including approval by Tower shareholders.
Intel announced that it intends to finance the acquisition with cash from its balance sheet, while it is expected to immediately increase earnings per share of the American giant.
According to both companies, Tower will remain independent until the agreement is completed.
It will then be integrated into Intel Foundry Services (IFS), which Intel founded a year ago to meet growing global demand for microchips.
Source: Capital
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