GlobalFoundries Parent ATIC buys Chartered Semiconductor

$3.9 billion give or take a few cents

Sep 6, 2009 by

IT LOOKS LIKE ATIC, one of the parents of GlobalFoundries, made a bid to buy Chartered Semiconductor. The deal has been rumored for some time, and it is now official.

The move is a great one for both sides. and will almost assuredly mean Chartered will be merged with GlobalFoundries in short order. That will bring GlobalFoundries a lot of things it needs – libraries, older processes, customers, and customer support infrastructure. For Chartered, it is cash, stability, and technology nodes that it otherwise would be hard pressed to develop.

Overall, the deal is worth $3.9 billion, $1.9 billion in cash, the rest in debt and shares. This represents a 14.2% premium over the 30-day trading average for Chartered. Compared with its standalone future, this is a very good deal for shareholders.

ATIC buying Chartered is a huge win for GlobalFoundries, and it fills several of the largest gaps in the company’s portfolio. GlobalFoundries also gets a second fab, and is handed customers that it likely would have had a hard fight to bring in otherwise. You can read the details here.S|A

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Charlie Demerjian

Roving engine of chaos and snide remarks at SemiAccurate
Charlie Demerjian is the founder of Stone Arch Networking Services and SemiAccurate.com. SemiAccurate.com is a technology news site; addressing hardware design, software selection, customization, securing and maintenance, with over one million views per month. He is a technologist and analyst specializing in semiconductors, system and network architecture. As head writer of SemiAccurate.com, he regularly advises writers, analysts, and industry executives on technical matters and long lead industry trends. Charlie is also available through Guidepoint and Mosaic. FullyAccurate