Semiconductor solutions provider Microsemi and PMC-Sierra, a semiconductor and software solutions provider in storage, optical and mobile networks, announced it has entered into an agreement under which Microsemi will acquire PMC in a transaction valued at approximately $2.5 billion, which represents a 77.4% premium to the closing price of PMC’s stock as of September 30, 2015.

According to a related 8-K filing, Morgan Stanley Senior Funding has committed to provide a $350 million revolver, $375 million senior secured term loan and a $2.2 billion senior secured term loan B to support the deal. Pursuant to a joinder agreement, Bank of Tokyo-Mitsubishi UFJ and Deutsche Bank AG have assumed 26.25% and 25% respectively of Morgan Stanley’s commitment.

Stifel is acting as exclusive financial adviser to Microsemi, along with O’Melveny & Myers LLP which is serving as legal adviser. Qatalyst Partners and Needham & Company are acting as financial advisors to PMC and Skadden, Arps, Slate, Meagher & Flom is acting as PMC’s legal advisor.