Thursday, August 23, 2007

Vitesse to Sell Storage Products Business to Maxim

Vitesse Semiconductor agreed to sell a portion of its storage products business to Maxim Integrated Products for $63 million in cash and potential earn-out payments of up to $12 million in the aggregate.

The deal includes Vitesse's Serial Attached SCSI (SAS), Serial Attached ATA (SATA) expander product segments, enclosure and baseboard management devices and certain other assets of Vitesse's Storage Products Division, which is based in Colorado Springs. Vitesse will retain its RAID-on-Chip (ROC) and Fibre Channel product segments, which had been part of the Storage Products Division and will be integrated into its continuing operations.

Vitesse said it plans to focus on its core networking and Ethernet IC businesses. Vitesse also announced $30 million in new financing, which the Company will use, along with the sale proceeds, to repay its existing credit facility and to invest in its business.