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Microsemi to buy Vitesse Semiconductor for USD 389 million
2015-03-18 13:34:00| Telecompaper Headlines
(Telecompaper) Microsemi is acquiring Vitesse Semiconductor for USD 389 million to expand in the communications market. The two chipmakers reached a definitive agreement on the offer of USD 5.28 cash for each Vitesse share, a 32 percent on the average closing price during the 30 days prior to the announcement. Based in California, Vitesse designs high-performance semiconductors, application software, and integrated turnkey systems for carrier, enterprise and Internet of Things networks. Vitesse said that Microsemi should be able to leverage its Ethernet technology and help Vitesse scale its industrial IoT strategy. Microsemi said it expects "significant" synergies from the takeover, and Vitesse should add 16-20 cents a share in annual earnings the first year of the takeover. The company expects to complete the takeover by the end of June.
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Category:Telecommunications