Skyworks Reports Termination Of Merger Agreement With PMC-Sierra

(RTTNews) - Skyworks Solutions, Inc. (SWKS) said it decided not to modify its amended and restated merger agreement with PMC-Sierra, Inc. (PMCS), entered into on October 29. PMC terminated the amended and restated merger agreement and, as a result, Skyworks is entitled to an $88.5 million termination fee from PMC.

Skyworks said it maintains a highly disciplined approach to the assessment of potential acquisition candidates, and at an increased valuation, PMC no longer meets Skyworks' financial criteria.

Skyworks' upwardly revised mid-term target operating model remains unchanged from the annualized non-GAAP earnings per share of $8.00 it provided on its fourth-quarter fiscal 2015 earnings conference call on November 5.