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.

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