Recently, Standard Microsystems Corporation ( ) held a special meeting of stockholders, whereby the stockholders of the company approved the merger with Microchip Technology Incorporated ( MCHP - Analyst Report ) , announced in May.

Last month, Microchip and Standard Microsystems Corporation were granted early termination of the waiting period on May 18, 2012, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

On May 2, 2012, Microchip Technology signed a definitive agreement to acquire Standard Microsystems Corporation for $37.00 per share in cash for about $939 million. The net value stood at $766 million, excluding SMSC's cash and investments on its balance sheet of approximately $173 million.

Microchip has already submitted the required non-U.S. filings for pre-closing antitrust clearance applicable to the merger. The filings were submitted in China, Korea, Germany and Turkey by the end of May and early June.

Microchip expects this acquisition to be accretive to the bottom line in the first quarter after its completion. The company believes that Standard Microsystems' smart mixed-signal connectivity solutions aimed at embedded applications will perfectly complement Microchip's embedded control business. We view this acquisition a definite positive. Standard Microsystems reported net sales of $412 million in fiscal 2012, which ended in February. The acquisition is expected to broaden Microchip's existing product portfolio with the addition of Standard Microsystems' new products and capabilities in the automotive, industrial, computing, consumer and wireless audio markets.

Meanwhile, earnings estimates have declined in the last three months even though the company has surpassed the first-quarter results by a penny. A significant improvement in business is not on the cards in the near term.

Nevertheless, we view the recent acquisition of Standard Microsystems Systems as positive and maintain a Neutral recommendation.

Our Neutral recommendation is supported by a Zacks #3 Rank, which translates into a short-term rating of Hold.