Interesting deal factoring in the stock's cash value...buyers market.

SSTI EPS = (-$0.51/Share)

"For instance, while the transaction is valued at $275 million, Microchip will actually pay only about $95 million for SST because the target company has $180 million in cash in its accounts, according to Microchip. Analysts using SST's financial data from the third quarter of 2009 when the company reported about $211 million in cash and other liquid assets believe the deal may be even sweeter for Microchip.

"SST has $2.25 per share in cash, investments and net working capital," said Farukh Farooqi, an analyst at Marquis Research LLC. This "means, Microchip is really offering 35 cents per share in value or approximately $35 million for a semiconductor business which generates $280 million in sales and almost $50 million in gross profit and another $40 million in license fees. The license fees alone can be worth $200 million using a 20 percent yield."

http://eetimes.com/news/latest/showArticle.jhtml?articleID=222601007

How did SST get into this situation where it is literally being purchased by a buyer that has the option of using money from the acquisition target's coffers to close the deal?