Microsemi Corp. has agreed to acquire Camarillo-based networking chip maker Vitesse Semiconductor Corp. for $389 million.
The cash offer, which has been approved by both company boards, represents a 32% percent premium based on the average closing price of Vitesse’s shares during a 30 trading day period ending March 17.
Microsemi also has received approval from Vitesse stockholders who control about 22% of the company’s outstanding common shares.
The deal, one of Microsemi’s largest to date, is expected to close by late June.
The deals gives Vitesse a “go shop” period of 21 calendar days through April 7 to solicit other bids. Microsemi has the right to match a higher bid and is eligible for certain break-up fees if the deal is terminated under certain circumstances.
Vitesse designs high-performance chips, application software, and integrated turnkey systems for global carrier, enterprise and Internet of Things networks.
The company reported revenue of $108.4 million in the 12 months through September, the end of its fiscal year.
Its shares skyrocketed 37% this morning on word of the deal to a market value of $367.6 million.
Microsemi shares are up less than 1% with a market cap of $3.2 billion.
