Aliso Viejo-based Microsemi Corp. agreed to sell its embedded security, RF, microwave and custom microelectronics businesses for $300 million to Mercury Systems Inc., shedding about 275 employees in Camarillo; San Jose; Phoenix, Ariz.; and West Lafayette, Ind.
The business lines—which include solid-state storage technology, security and mixed signal system-on-a-chip processing—accounted for about $100 million in revenue and adjusted profits of $28 million in the 12 months through September.
They aren’t considered core business lines, as Microsemi recently moved into the budding Internet of Things and automotive markets.
The transaction, funded through a $265 million bank term loan and roughly $50 million cash, is expected to close in the second quarter.
—Chris Casacchia
