Thursday, January 26, 2017

MACOM Completes AppliedMicro Acquisition

MACOM completed its previously announced acquisition of AppliedMicro.  MACOM plans to sell off AppliedMicro’s compute business.


John Croteau, MACOM’s President and Chief Executive Officer stated, “I am pleased to announce the completion of this transaction. AppliedMicro’s leadership in MACsec and 100G to 400G single-Lambda PAM4 positions MACOM as a preferred supplier to major Enterprise and Cloud Data Center providers, many of whom are adopting the technologies this year. MACOM will now be able to support customers with all of the requisite semiconductor content for optical networks—analog, photonic and mixed signal PHY—from the switch to fiber for long haul, metro, access, backhaul and data centers.”

http://www.macom.com

MACOM to Acquire AppliedMicro for $770 Million

MACOM Technology Solutions Holdings agreed to acquire Applied Micro Circuits Corporation (AppliedMicro") for approximately $8.36 per share, consisting of $3.25 in cash and 0.1089 MACOM shares per share of AppliedMicro. The deal, which represents a 15.4% premium over AppliedMicro's closing price of $7.25 on November 18th, is valued at approximately $770 million. MACOM plans to divest AppliedMicro's non-strategic Compute business within the first 100 days of closing. The company said it is already talking to interested parties.

MACOM said the deal will accelerate its growth in optical technologies for Cloud Service Providers and Enterprise Network customers.

AppliedMicro, which supplies semiconductors for compute and computing in data centers, has approximately $165 million in TTM revenue (including the Compute business) and $82 million of cash and short-term investments. AppliedMicro's leadership PAM4 solutions based on FinFET technology and custom engagements with top-tier Data Center and service provider customers is expected to strengthen MACOM's competitive position with those customers

MACOM and AppliedMicro's pro forma combined TTM revenue was approximately $709 million including AppliedMicro's Compute business, or approximately $644 million excluding the Compute business
AppliedMicro's Connectivity business is highly complementary to MACOM's product portfolio, through the addition of market-leading OTN framers, MACsec Ethernet networking components and the industry's leading single-lambda PAM4 platform

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