LI tech firm drops bid for Calif. rival

Hauppauge-based Standard Microsystems Corp. has lost out on its bid to acquire a rival California company.

In January, SMSC offered $2.25 a share, or about $284 million, in an initial bid for Conexant Systems Inc., and appeared to have sealed the deal.

But San Francisco-based private equity company Golden Gate Capital offered $2.40 a share for Conexant, and SMSC was given the chance to match or beat that offer. It declined this week to do so.

"While we believed that SMSC's acquisition of Conexant would have provided for a highly complementary combination of our businesses, we have elected not to pursue the merger at a higher premium as we believe that our offer for the Conexant business was fully valued," Christine King, president and chief executive, said in a statement Wednesday. "SMSC's organic business remains healthy and our long-term growth objectives are intact."

Conexant must pay SMSC, developer of Smart Mixed-Signal Connectivity solutions, $7.7 million to terminate their deal. Conexant, based in Newport Beach, makes products for imaging, audio and embedded modem and video.

The attempted purchase was the latest in a series of expansion efforts by SMSC. In November it bought another California company, Symwave Inc., a maker of USB 3.0 products.

And in June SMSC bought a Dutch wireless product design company, Wireless Audio IP B.V., which makes plug-and-play wireless products for home theater, headphones, LED TVs, PCs, gaming and automotive entertainment.