9.7 Consider the acquisition by Gould, Inc. of American Microsystems, Inc. in a stock swap valued at about $200 million. American Microsystems, with sales of $129.4 million, was the largest commercial maker of custom semiconductors at the time.

Gould said it would issue 1.78 shares of its own common stock for each of American Microsystems 4,165,000 common and 150,000 preferred shares. Upon the announcement, Gould common closed at $24.125 a share, down 87 1/2 cents a share and American Microsystems common was quoted at a bid price of $37.75 a share, up $11.125.

For the third quarter, Gould’s profit rose 56% to $22.3 million, or 63 cents a share, from $14.3 million, or 41 cents a share, a year earlier. Sales increased 18% to $479.1 million from $405.1 million. For the third quarter, American Microsystems earnings doubled to $2.8 million from $1.4 million a year earlier. Revenue rose to $37.5 million from $35.8 million.