Diodes Inc. (Nasdaq: DIOD) is adding Pericom Semiconductor Corp. (Nasdaq: PSEM) in a $400 million cash deal that will give both companies additional scale in the chipmaking space. Pericom closed at $12.18 on Sept. 2 and they are being purchased at $17 per share.

The purchase brings Diodes one step closer of the company’s goal to reach $1 billion in annual revenue, while putting San Jose, California-based Pericom on a faster growth path.

Pericom makes chip controllers that are used in home appliances such as hair curlers and toaster ovens. The target also serves the digital, telecom and automotive sectors. Diodes, of Plano, Texas, produces converters and switches for the industrial, automotive and consumer industries.

“Diodes’ size and scale provides an excellent platform for our products to gain access to a broader customer base and drive a higher level of growth than Pericom would be able to achieve as a standalone company,” says Pericom CEO Alex Hui.

Cowen and Co. and Latham & Watkins LLP are advising Pericom. Sheppard Mullin Richter & Hampton LLP is representing Diodes, which is receiving financing from Bank of America Merrill Lynch.

Strategic buyer deal activity in semiconductors has been picking up recently. Similar deals in 2015 include Intel Corp.'s (Nasdaq: INTC) deal for Altera Corp. (Nasdaq: ALTR) for $16.7 billion and Qualcomm Inc.'s (Nasdaq: QCOM) $47 million Ikanos Communications Inc. (Nasdaq: IKAN) buy.

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