Diodes Inc. has agreed to buy Pericom Semiconductor Corp. for about $400 million, including the company's cash, creating a semiconductor company with $1 billion in annual revenue.

The offer of $17 a share is a 40% premium to Pericom's closing price of $12.18 on Wednesday. Both companies' boards have approved the deal.

Pericom's shares were halted premarket, while Diodes shares were inactive.

Plano, Texas-based Diodes makes things like diodes, rectifiers and transistors for consumer electronics, communications and automotive markets. Pericom's products include analog, digital and mixed-signal integrated circuits.

Diodes said the deal will strengthen its analog and mixed-signal connectivity offerings and add immediately to its per-share earnings.

The deal is expected to close in the fourth quarter.

By: DocMemory
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