Mergers and Acquisitions Recap: Hot Topic Chatter, Teradata Buys eCircle

Microchip Technology (NASDAQ:MCHP) acquires Standard Microsystems (NASDAQ:SMSC) in a deal that represents a total equity value of $939 million. MCHP’s bid of $37 per share yields a windfall of 41 percent over Tuesday’s SMSC closing price. Assuming shareholder’s approval, the transaction is expected to close in the third quarter.

Shares of Ascena (NASDAQ:ASNA) move up more than 10 percent, following word that it will purchase Charming Shoppes (NASDAQ:CHRS) for $7.35 per share ($890 million in total). The bid is nearly 25 percent over CHRS’ Tuesday closing price, and is sending those shares up by almost the same percentage late midday Wednesday. Charming Shoppes’ Lane Bryant brand is thought to be the critical factor in the deal.

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Teradata (NYSE:TDC) buys eCircle, a major cloud marketing software firm in Europe. The latter’s messaging solutions will be linked with the former’s own analytics and marketing management software. The acquisition, of which the terms were undisclosed, occurs in the midst of intensified rivalry in the cloud marketing space, and increasing interest in the application of advanced data mining techniques to marketing.

Hot Topic (NASDAQ:HOTT) gets fingered as an attractive acquisition target by B. Riley, and its shares take off. The company’s market cap is $437 million, which is in the center of the recent merger and acquisitions’ range.

Standard Microsystems’ (NASDAQ:SMSC) shares leap following word that it will be purchased by its peer microcontroller supplier Microchip (NASDAQ:MCHP). It isn’t exactly bad news that the buyer expects that the acquisition will become profitable during the first full quarter following its closing. Capstone’s Jeff Schreiner speculates that Microchip wants to reinforce its spot in the growing automotive microcontroller market.

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