Microsemi buys Actel for $430 million
10/4/2010 1:10 AM EDT
SAN JOSE, Calif. - Microsemi Corp. has entered into the FPGA market.
The analog and mixed-signal chip maker has entered into a definitive agreement to acquire Actel Corp. for $20.88 per share through a cash tender offer. The total transaction value is approximately $430 million, net of Actel's projected cash balance at closing.
Based in Mountain View, Calif., Actel is a supplier of field programmable gate arrays (FPGAs). Actel competes against Altera, Lattice, SiliconBlue and Xilinx. Now, Microsemi will compete in the tough FPGA fray.
Observers were scratching their heads about the deal. It was a complete surprise. Analog and FPGAs are completely different markets.
"We believe the addition of Actel will deliver compelling synergies to Microsemi," said James J. Peterson, Microsemi's president and chief executive, in a statement.
"Actel will bring the most widely-used mixed-signal, radiation tolerant FPGA products in the aerospace and defense markets today, and the company's products will allow Microsemi to extend its growing system-level capabilities,'' he said. ''As Microsemi continues to move up the value chain in offering its customers system solutions that are better, faster, and more-cost effective than they can build themselves, Actel's highly-integrated solutions will be an integral component in enabling this growth."
Microsemi expects significant synergies from this immediately accretive transaction. Based on current assumptions, Microsemi expects the acquisition to be $0.22 to $0.28 accretive in its first full calendar year ending December 2011.
For the September quarter, net sales for Microsemi are expected to range from $146 to $150 million. As of this date, Microsemi remains comfortable with its previously announced non-GAAP diluted earnings per share guidance for its fourth fiscal quarter 2010 of $0.33 to $0.35.
No approval of the shareholders of Microsemi is required in connection with the proposed transaction. Terms of the agreement were unanimously approved by the boards of directors of both Microsemi and Actel.