Is PMC Storage Shopping?

Chip firm PMC-Sierra Inc. (Nasdaq: PMCS) has its eyes on an acquisition, and most observers think the target could be one of the bigger names in storage.

Officials aren't exactly being coy about it. "[PMC] has identified a semiconductor business that is consistent with its business strategy, and, if acquired, could significantly increase the registrants consolidated assets and revenue," the company stated in an SEC document filed Oct. 20.

The statement goes on to say that PMC is "in advanced discussions" with the target company but hasn't settled on any terms yet.

On the same day as the filing, PMC launched a debt offering worth $225 million, adding to its cash stash of $376 million, apparently in preparation for the acquisition. (See PMC Prices $225M Offering.)

All signs point to a deal being imminent. "We believe the company could make an announcement in the next few weeks," writes analyst Ram Ganesh of Deutsche Bank AG in a recent report.Read the full story at Light Reading.

— Craig Matsumoto, Senior Editor, Light Reading