Microchip Technology Inc. signed a deal to buy Atmel Corp., which said last week that Microchip's unsolicited bid was superior to an agreement with Dialog Semiconductor PLC.

Dialog's cash-and-stock offer for Atmel was worth about $4.6 billion when it was announced in September. Dialog's share price has declined since then.

After Atmel called Microchip's $8.15-a-share cash-and-stock bid superior, Dialog said it wouldn't increase its buyout offer.

On Tuesday, Microchip said the Atmel deal has an equity value of about $3.56 billion.

Microchip said the transaction provides a "much higher" cash consideration than the Dialog agreement.

Atmel, which also had attracted an offer from fellow California chip maker Cypress Semiconductor Corp., is best known for chips called microcontrollers that provide computing power for many kinds of consumer and business hardware.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

January 19, 2016 17:55 ET (22:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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