Microchip Technology to acquire Microsemi
Microchip Technology on Thursday announced its to acquire Microsemi for $8.35 billion, in a deal with a total enterprise value of about $10.15 billion.
Microchip, headquartered in Chandler, Arizona, earns most of its revenues from the industrial, automotive and consumer markets. The Microsemi acquisition, the company said, should expand its offerings in the data center, communications, and the defense and aerospace markets. Microsemi, Microchip added, provides it with strong complementary analog and mixed-signal product lines.
The deal should create an estimated $300 million in synergies in the third year after close of transaction, according to Microchip. Microchip has made several acquisitions over the past decade.
"Even as we execute a very successful Microchip 2.0 strategy that is enabling organic revenue growth in the mid to high single digits, Microchip continues to view accretive acquisitions as a key strategy to deliver incremental growth and stockholder value," Steve Sanghi, Chairman and CEO of Microchip, said in a statement. "The Microsemi acquisition is the latest chapter of this strategy and will add further operational and customer scale to Microchip."
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