Vitesse Semiconductor to be acquired by Microsemi for US$389 Million
Published By : 19 Mar 2015 | Published By : QYRESEARCH
The company Microsemi Corporation has recently announced that it has reached a deal to acquire Vitesse Semiconductor for a total of US$389 million. This will further drive towards the consolidation trend in the chip making industry.
The bid of a total US$5.28 share was done through a cash tender offer. It represents a 36 per cent premium over the Vitesse’s closing price on Tuesday this week and a premium which is of 32 per cent during the 30 day average closing price. Under the terms of the agreement, the organization Vitesse has the date of April 8th to solicit a better counterbid. This tactic is called as a go shop provision.
Microsemi Corporation is based in Aliso Viejo, California and is known mostly as a supplier to the military. During 2014 year, around 27 per cent of its sales were related to security and defense. On the other hand, Vitesse the firm is headquartered in Camarillo region of California. This company is involved in supplying products to a range of network equipment makers; these include Alcatel-Lucent, Ericsson, Cisco Systems, and Hewlett Packard.
Currently, the Bank of America Merrill Lynch providing the debt financing for this acquisition. Alternatively, Deutsche Bank is supporting the company Vitesse in its go shop process.
However, both of the firms involved in the deal are consulting their financing association and other law firms.
Microsemi Corporation is presently advised by Merril Lynch, Bank of America and also from the law firm O’Melvery and Myers. Vitesse is being advised by Needham and Company, Deutsche Bank, and also by the law firm Stubbs Alderton and Markiles.