Wednesday, March 18, 2015

Microsemi to Acquire Vitesse Semiconductor

Microsemi Corporation agreed to acquire Vitesse Semiconductor for $5.28 per share in cash, a premium of 32% on the average closing price of Vitesse's shares over the 30 trading days, and representing a transaction value of approximately $389 million.

Vitesse (Nasdaq: VTSS) offers a portfolio of high-performance semiconductors, application software, and integrated turnkey systems solutions for carrier, enterprise and Internet of Things (IoT) networks worldwide. Key markets include network infrastructure for mobile access/IP edge, enterprise cloud access, and industrial-IoT markets. Vitesse is headquartered in Camarillo, California.

Microsemi (Nasdaq: MSCC) offers semiconductors and system solutions for communications, defense & security, aerospace and industrial markets. Products include high-performance and radiation-hardened analog mixed-signal integrated circuits, FPGAs, SoCs and ASICs; power management products; timing and synchronization devices and precise time solutions, setting the world's standard for time; voice processing devices; RF solutions; discrete components; security technologies and scalable anti-tamper products; Power-over-Ethernet ICs and midspans; as well as custom design capabilities and services. Microsemi is headquartered in Aliso Viejo, California.

Microsemi said it expects the acquisition to be $0.16 to $0.20 per share accretive in its first full fiscal year ending September 30, 2016.

"This acquisition is further evidence of Microsemi's continuing commitment to grow as a communications semiconductor company," stated James J. Peterson, Microsemi chairman and CEO. "Vitesse's highly complementary technology suite will expand our product offering and accelerate growth with differentiated technology in emerging markets, while benefitting from the increased scale, consolidated infrastructure and cost savings of the combined entity."

"The proposed acquisition of Vitesse by Microsemi will create a powerful combination," said Chris Gardner, Vitesse's chief executive officer. "I believe Microsemi will be able to leverage Vitesse's Ethernet technology and capabilities further into the communications market and has the scale to implement the adoption of our industrial IoT strategy."

Microsemi's recent acquisitions include:

  • Centellax,a supplier of high-speed analog and RF semiconductor products for the optical communications and Ethernet datacom markets, September 2014.
  • Mingoa, semiconductor IP for hardware accelerated Ethernet OAM and embedded tests, July 2014
  • Symmetricom, highly precise timekeeping technologies and solutions, November 2013
  • Maxim Integrated Product’s telecom clock generation, synchronization, packet timing and synthesis business, January 2012
  • Zarlink Semiconductor, mixed-signal chip technologies for a broad range of communication and medical applications, including timing solutions that manage time-sensitive communication applications over wireless and wired networks, October 2011
  • Actel, low power FPGAs, mixed signal FPGAs, and programmable logic solutions, November 2010.