To increase traction in the communications semiconductor industry, Microsemi Corp. announced that it has entered a definitive agreement to acquire Vitesse Semiconductor. By leveraging Vitesse’s portfolio of high-performance semiconductors, application software, and integrated turnkey systems, Microsemi hopes to further itself as an Industrial Internet of Things (IIoT) market leader. The total transaction value is approximated at $389 million.
The acquisition will help the company’s standing in network infrastructure markets, including mobile access/IP edge, enterprise cloud access, and IIoT networking. Microsemi expects to see immediate accretion in the first full quarter of completion after the end of the second fiscal quarter of 2015. Vitesse hopes it will benefit from the increased scale, consolidated infrastructure, and cost savings enabled by Microsemi.