IDT To Buy Tundra For $99.8 Million

SAN JOSE, Calif. (AP) — Communications chip maker Integrated Device Technology Inc. has agreed to buy Canadian rival Tundra Semiconductor Corp. for 6.25 Canadian dollars ($5.17) per share.

That's a 14 percent premium over Tundra's closing share price last Friday on the Toronto Stock Exchange, before IDT made its offer public early Monday. The full value of the deal comes to 120.8 million Canadian ($99.8 million).

"We believe the result of this transaction will provide our customers with a broader product offering as well as improved service," IDT Chief Executive Ted Tewksbury said in statement.

IDT, based in San Jose, Calif., said it will finance the acquisition with cash on hand.

The deal has been approved by the companies' boards and will be put to a Tundra shareholder vote in June. It is expected to close late in the second quarter or early in the third, IDT said.

IDT shares rose 13 cents, or 2.5 percent, to $5.40 in afternoon trading.