Silicon Motion rejected the termination of the merger agreement by MaxLinear

Last month, MaxLinear announced that it has exercised its contractual rights to terminate the acquisition of Silicon Motion. The transaction was originally slated for completion before May 23, 2023, and according to MaxLinear’s announcement and documents submitted to the U.S. Securities and Exchange Commission, accusations were levied against Silicon Motion.

As reported by TechPowerup, Silicon Motion has recently issued a written notice to MaxLinear, rejecting the latter’s termination of the merger agreement, as well as the claims made in previous announcements. Silicon Motion has expressed its intention to actively pursue remedial measures and to retain all rights under this agreement and other agreements, including but not limited to the right to seek substantial damages from MaxLinear.

In May of last year, MaxLinear announced that it had reached a definitive agreement with Silicon Motion to acquire the company through a combination of cash and stock transactions, with the total deal valued at approximately $3.8 billion. The acquisition was expected to be completed within 18 months. In this transaction, each American Depositary Share (ADS) corresponding to four ordinary shares of Silicon Motion would receive $93.54 in cash and 0.388 shares of MaxLinear common stock, with the total consideration per ADS amounting to $114.34 (calculated based on MaxLinear’s closing price on May 4, 2022).

According to the original plan, Silicon Motion would become a wholly-owned subsidiary of MaxLinear, and the transaction had received approval from regulatory agencies, including the State Administration for Market Regulation (SAMR).