SAN JOSE, Calif. — Analog and mixed-signal chip specialist Microsemi Corp. has entered into a definitive agreement to acquire PowerDsine Ltd. for $245 million.
With this acquisition, Microsemi expands its portfolio of product offerings to include a broad range of power-over-Ethernet (PoE) solutions.
Under the terms of the agreement, each PowerDsine shareholder will receive $8.25 per share in cash and 0.1498 shares of Microsemi common stock for each share of PowerDsine common stock.
Based on closing stock prices on Oct. 23, the total consideration values PowerDsine at $11.00 per share, an 18.5 percent premium to PowerDsine's last closing stock price, for a total consideration of $245 million on a fully-diluted basis, or $168 million net of cash acquired.
Microsemi expects the transaction to be neutral to slightly dilutive to EPS for the first 12 months after closing and accretive thereafter.
Microsemi will continue to support PowerDsine's product roadmaps. PowerDsine employs approximately 136 employees worldwide, which includes 94 engineers, and has facilities in Hod Hasharon, Israel; San Jose, California; and Melville, New York; and regional sales offices in China, India, Japan, Taiwan and the United Kingdom.