On 10th February, LED chip maker Microchip Technology Inc (MCHP) announced on Monday that it has agreed to acquisition of high-voltage analog and mixed-signal chip maker Supertex Inc by $394 million in cash, in order to strengthen its supply in medical, and telecommunications industries.

Under the agreement, Microchip will pay $ 33 per share to Supertex, last Friday, this stock price at $24.38, closing a premium of 35%.

This transaction is expected to be completed in the second quarter of this year. Microchip expects to help increase its earnings per share after completing the transaction in the first quarter.