Microchip Technology Inc. on Tuesday raised its purchase price for Silicon Storage Inc., aiming to thwart a competing offer for the maker of flash memory cards used in digital cameras and MP3 players.
Chip maker Microchip, which is based in Chandler, agreed to pay $3 per share in cash for Silicon Storage, up from $2.85 per share. The deal is expected to close in the second quarter.
Private equity firm Cerberus Capital Management LP made the competing offer, according to a filing with the Securities and Exchange Commission.
In February, Silicon Storage agreed to be acquired by Microchip Technology after ending a similar agreement with Technology Resource Holdings Inc. for $2.10 per share. The agreement gave Silicon Storage 45 days to look for a better offer from a third party.
After Silicon Storage accepted Microchip's offer, Cerberus entered the bidding. A spokeswoman for Silicon Storage said the company then notified Microchip Technology, which raised its bid.