Exar Corp (EXAR) said it will aquire Hifn Inc (HIFN).  In the deal, I would get either:

  • $4/sh ..OR..
  • 0.3529 sh of EXAR stock and $1.60 cash

At current HIFN price of $3.87, the cash deal still looks in the money for an arbitrage (roughly 3% ROI).  Mgmt says (via press release) the deal should close in early second calendar quarter of 2009– that means the annualized return should be okay.

This is a friendly deal, so chances are good it will get done.  I am entering a position in HIFN in my simulated portfolio today at $3.87/sh.