Industrial IoT Drives Microsemi-Vitesse Merger

MIPS vs. ARM conflict on horizon

Junko Yoshida, EETimes
3/18/2015 00:00 AM EDT

MADISON, Wis. – In a sign that the rash of M&As among chip vendors has yet to subside, Microsemi Corp. announced Wednesday (March 18) its acquisition of Vitesse Semiconductor Corp. for $389 million.

Microsemi is paying $5.28 a share in cash for each Vitesse share, which represents a premium of 36% over Vitesse’s Tuesday closing. Under terms of the deal, Vitesse has reportedly until April 8 to solicit a superior counterbid, in what is known as a go-shop provision.

The merger’s focus is “communications semiconductors,” with plans to direct the combined company at “carrier, enterprise and industrial Internet of Things markets,” according to Microsemi’s statements.

To read the full article, click here