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  Date: 06/11/2013

M/A-COM to acquire Mindspeed for US$ 272 million

Microwave component maker M/A-COM has agreed to acquire the communication semiconductor IC vendor Mindspeed Technologies for approximately US$ 272 million, (at a price of US$ 5.05 per share in cash tender offer). M/A-COM offers broad set of components for microwave and millimeter wave RF communication. Some of its components include gallium arsenide and other compound semiconductor based devices, MMIC amplifiers, LNA, communication ICs, GaN/SiC RF transistors, diodes, RF switch, passive microwave components, and multichip modules. M/A-COM serves wide range of market applications including aerospace and defence, and RF communication systems.

Mindspeed is a fables semiconductor chip vendor serving both wired and wireless telecom infrastructure market such as optical and broadband 4G/3G base stations. Mindspeed is known for its communication processors called comcerto, enabling design of customer communication terminal equipment gateways featuring voice over Internet protocol, data and video services to the broadband customers. Mindspeed also offers advanced analog ICs for optical communication systems. Mindspeed has reported 4% growth in revenue for its high performance analog business used in wired/optical communications in its recent quarterly revenue announcement, and it constituted 44% of the total Mindspeed's fiscal fourth quarter 2013 revenue. Whereas revenue from its communication processors for the same quarter is US$ 16.2 million, a 45% of total revenue and the growth has fallen by 8% compared to previous quarter.

M/A-COM has reported revenue of US$83.7 million in its latest quarter ending September 27, 2013, US$1.5 Million higher than the previous quarter.

"After a thorough review of a wide range of alternatives by Mindspeed's Board and management team, and spearheaded by Morgan Stanley, we are thrilled to be joining forces with MACOM," said Raouf Y. Halim, Mindspeed's chief executive officer. "The company shares our commitment to innovation, and the two companies complement each other well, particularly within the high-performance analog market segment. Together we will have the scale and resources to deliver innovative technologies to our customers and drive growth, with a larger portfolio of products and a global sales force."

"This transaction is a testimony to the dedication and excellent execution of our employees over the past decade building our product platforms into high-margin, profitable, and fast-growing businesses," continued Mr. Halim. "We have created a broad portfolio of industry-leading SoC and high-performance analog solutions across multiple wireline and wireless market segments. This transaction affirms the tremendous value that our employees have created, while at the same time delivering to Mindspeed shareholders an immediate and attractive premium."
Author: Srinivasa Reddy N
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