Microsemi Agrees To Buy Vitesse In $389 Mln Cash Deal - Quick Facts

(RTTNews) - Microsemi Corp. (MSCC), a provider of semiconductor solutions, and Vitesse Semiconductor Corp. (VTSS), have entered into a definitive agreement for Microsemi to acquire Vitesse for $5.28 per share through a cash tender offer. The total transaction value is about $389 million.

The offer marks a premium of 32 percent based on the average closing price of Vitesse's shares of common stock during the 30 trading days ended March 17. The deal is expected to close in Microsemi's fiscal third quarter, ending June 28.

The board of directors of Vitesse unanimously recommended that Vitesse's stockholders tender their shares in the tender offer.

Microsemi expects significant synergies from this transaction and expects to see immediate accretion in the first full quarter of completion.

Based on current assumptions, Microsemi expects the acquisition to be $0.16 to $0.20 per share accretive in its first full fiscal year ending September 30, 2016.

As of now, Microsemi remains comfortable with its January 22 non-GAAP guidance for its second fiscal quarter of 2015, ending March 29.