NEW YORK, Dec. 9, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Applied Micro Circuits Corp. ("AMCC" or the "Company") in connection with the proposed acquisition of the Company by MACOM Technology Solutions Holdings, Inc. ("MACOM"). On November 21, 2016, MACOM announced it had reached a definitive agreement to acquire all outstanding shares of AMCC in a cash-and-stock transaction valued at $770 million. Under the terms of the agreement, AMCC shareholders will receive 0.1089 of a MACOM share and $3.25 in cash for each AMCC share owned; representing consideration of $8.36.
WeissLaw is investigating whether AMCC's Board acted to maximize shareholder value prior to entering into the agreement. Notably, prior to the announcement, at least one analyst set a target price of $11.00 per share, or nearly $3.00 above the consideration. Moreover, according MACOM's President and CEO, the transaction is a strategic acquisition "which  will be very accretive at all lines." MACOM expects AMCC's market leading Connectivity business to be highly complementary to its product portfolio, accelerating top line growth, strengthening its competitive position with a new customer segment, and increasing its operating margins. Finally, upon completion of the transaction, AMCC shareholders will own a mere 15% of the newly combined company.