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NEW YORK (The Deal) -- Shares of  PMC-Sierra (PMCS) soared more than 30% Tuesday morning following news that the California chipmaker had agreed to be acquired by Skyworks Solutions (SWKS) - Get Skyworks Solutions, Inc. Report in a $2 billion all-cash deal.

Woburn, Mass.-based Skyworks -- a supplier of chips to tech giants including Apple (AAPL) - Get Apple Inc. Report and Cisco Systems (CSCO) - Get Cisco Systems, Inc. Report as well as defense contractor North Grumman (NOC) - Get Northrop Grumman Corporation Report -- will pay $10.50 per share in cash for all outstanding shares of PMC-Sierra.

The agreement, which was announced Monday after market close, is about a 37% premium to target's Oct. 5 closing price of $7.69 per share.

Skyworks plans to finance the acquisition using available cash on hand from the combined companies in addition to new debt financing.

The boards of directors of both companies have granted approval of the transaction. The deal is expected to be completed in the first half of 2016, pending PMC shareholder approval and other customary closing conditions.

PMC-Sierra, with corporate headquarters in Sunnyvale, Calif., and about 1,200 employees worldwide, makes semiconductor components serving storage, optical and mobile networks. The communications network infrastructure  maker most recently reported about $124.8 million in revenue during its second quarter ended June 27 and a loss of about $8.6 million.

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With revenue and adjusted EBITDA of $530.2 million and $85.7 million, respectively, on a trailing 12-month basis, according to Bloomberg data, the transaction price implies a price-to-revenue multiple of about 3.8 times and price-to-EBITDA multiple of about 23.3 times.

"PMC enables us to substantially expand our serviceable market within some of the fastest-growing segments in technology,  including cloud storage and optical networking," Skyworks CEO and Chairman David J. Aldrich said in the announcement. 

The company expects the acquisition to result in $75 million of synergies, while contributing at least 75 cents to non-GAAP earnings per share on an annual basis. Post transaction, Skyworks said it will generate annual revenue north of $4 billion, gross margins around 55% and operating margins above 40%.

Skyworks, with an approximately $15 billion market cap Tuesday morning, could itself emerge as a takeover, The Deal reported in July.

The provider of chips and components for everything from cars and medical devices to GPS systems and smartphones could appeal to a large mobile technology company such as Qualcomm (QCOM) - Get Qualcomm Inc Report .

Listed on the Nasdaq, shares of Skyworks retreaded about 5% to $77.77 in Tuesday morning trading. Shares of PMC-Sierra, also trading on the Nasdaq, were up about 33.4% at $10.26.

The Monday evening deal comes on the heels of a busy year of consolidation among chipmakers. 

Recent transactions include a Sept. 29 agreement by Mellanox Technologies to acquire its smaller Israeli peer EZchip Semiconductor (EZCH) for approximately $811 million. Even bigger was U.K.-based Dialog Semiconductor's $4.4 billion agreement to swallow Atmel (ATML) on Sept. 21. 

Spokespeople for PMC-Sierra and Skyworks could not immediately be reached on Tuesday.