Microsemi has entered into a definitive agreement to acquire Vitesse for $5.28 per share with the total transaction value is approximately $389 million.
Vitesse develops semiconductor chips for mobile access/IP edge, enterprise cloud access, and industrial-IoT networking. Though Vitesse develops high-end chips, its revenue performance was below the industry range in 2014.
"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."