Data networking equipment maker PLX Technology Inc. reached an agreement to buy Teranetics, Inc., a privately held semiconductor company for about $35.8 million in a stock and cash deal.
Under the terms of the deal, PLX will acquire Teranetics, based in San Jose, Calif., in exchange for 7.4 million PLX shares -- worth $27.6 billion based on Friday's closing price -- as well as $1.3 million in cash and two promissory notes aggregating approximately $6.9 million. The first note will be for $5.4 million due one year from closing of the deal and the second will be for approximately $1.5 million due three years from closing.
PLX will also assume about $18 million of Teranetics' corporate obligations, including debt, transaction expenses incurred by Teranetics and cash bonuses payable to Teranetics employees.
The deal is expected to close in early October.
Shares of PLX technology, based in Sunnyvale Calif., rose 4 cents to close at $3.77 Friday, and added 3 cents in after-hours trading.
Source: http://www.businessweek.com/ap/financialnews/D9IEH8RG1.htm