Microsemi to acquire Vitesse for $5.28 per share

The board of directors of Vitesse unanimously recommends, that Vitesse’s stockholders tender their shares in the tender offer. The total transaction value is approximately $389m.

Vitesse designs a diverse portfolio of high-performance semiconductors, application software, and integrated turnkey systems solutions for carrier, enterprise and IoT networks worldwide. Vitesse’s products enable the fastest-growing network infrastructure markets including mobile access/IP edge, enterprise cloud access and industrial-IoT networking.

Microsemi expects significant synergies from this transaction and expects to see immediate accretion in the first full quarter of completion. Based on current assumptions, Microsemi expects the acquisition to be $0.16 to $0.20 per share accretive in its first full fiscal year ending 30^th September, 2016.

As of this date, Microsemi remains comfortable with its 22^nd January, 2015 non-GAAP guidance for its second fiscal quarter of 2015, ending 29^th March, 2015. Microsemi currently intends to announce it's second fiscal quarter results on 23^rd April, 2015.

“This acquisition is further evidence of Microsemi’s continuing commitment to grow as a communications semiconductor company,” stated James J. Peterson, Chairman/CEO, Microsemi. “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, Chief Executive Officer, Vitesse. “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.”