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Why Volterra is up 54 Percent Thursday (VLTR)

Shares of Volterra (NASDAQ: VLTR) are 54 percent premarket after Maxim Integrated announced that it was acquiring Volterra for $23 per share.

The acquisition represents a 55 percent premium over Wednesday’s closing price. The deal is valued at $605 million in equity value and $450 million in enterprise value.

Volterra produces power management devices primarily for cloud computing, enterprise, communications, and networking markets which are designed to lower the cost of ownership by making equipment more efficient.

“Maxim Integrated is known for its highly integrated solutions. With Volterra, we will strengthen our position in the enterprise and communications markets,” said Tunç Doluca, Maxim’s President and Chief Executive Officer. “We add a very talented team and leading-edge proprietary technology in high-current power management solutions, which further diversifies our business model.”

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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