Investor Alert: Kaplan Fox Announces Investigation Of Microchip Technology Inc.

NEW YORK, Sept. 20, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Microchip Technology Inc. ("Microchip" or the "Company") (NASDAQ: MCHP).  Investors who purchased Microchip common stock between March 2, 2018 and August 9, 2018 (the "Class Period") may be affected.  A complaint has been filed in the United States District Court for the District of Arizona against Microchip and certain executives on behalf of investors that acquired Microchip common stock during the Class Period.

On March 1, 2018, Microchip announced that it had signed a definitive agreement to acquire Microsemi Corporation ("Microsemi") for a total equity value of $8.25 billion, and a total enterprise value of about $10.15 billion.  In the press release announcing the acquisition, Microchip said "the transaction is expected to be immediately accretive to Microchip's non-GAAP earnings per share" and that "Microchip anticipates achieving an estimated $300 million in synergies" by the third year after the close of the transaction.

On May 29, 2018, Microchip issued a press release announcing that it had completed the acquisition of Microsemi.  Microchip's CEO, Steve Sanghi, was quoted as stating "[t]he Microsemi acquisition will significantly enhance our product portfolio, end-market diversification, operational capabilities and customer scale."

However, according to the complaint, only a few months later on August 9, 2018, Microchip acknowledged that its due diligence on Microsemi prior to the acquisition had been inadequate. Further, Microchip revealed that "Microsemi management was extremely aggressive in shipping inventory into the distribution channel" and that "Microsemi's distributors had about four months of inventory whereas Microchip's distributors carry about 2.5 months of inventory."  As a result, in the first quarter of fiscal year 2019, the period ended June 30, 2018, Microchip was "adversely impacted by $226.9 million of Microsemi purchase accounting, restructuring and other charges." 

Following this news, Microchip's common stock price fell $10.67 per share, about 10.9%, to close at $87.41 per share on August 10, 2018.

If you are a member of the proposed Class, you may move the court no later than November 16, 2018 to serve as a lead plaintiff for the purported class.  You need not seek to become a lead plaintiff in order to share in any possible recovery.  If you would like to discuss the complaint or our investigation, please contact us by emailing [email protected] or by calling 800-290-1952.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, the action, your rights, or your interests, please contact:

Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: [email protected]

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California  94104
(415) 772-4700
Fax:  (415) 772-4707
E-mail: [email protected]

SOURCE Kaplan Fox & Kilsheimer LLP