Irvine-based Microsemi Corp., a maker of chips for military, aerospace and industrial uses, said Tuesday it agreed to acquire White Electronic Design Corp. for $100 million.
The all-cash deal is expected to close during the current quarter.
Phoenix-based White Electronic does design, assembly and testing of chips that are used primarily by the military.
It specializes in an anti-tamper technology that’s built into GPS-guided weapons deployed in Afghanistan.
“This market is expanding rapidly as every major weapon system now requires this feature,” Microsemi said in a statement.
“The combination of Microsemi’s and White Electronic’s product portfolios further extends Microsemi’s integrated solution offering in the defense and aerospace markets, Chief Executive Jim Peterson said. “This anti-tamper capability is greatly needed today in protecting Department of Defense critical technologies, and especially helpful in enabling foreign military sales.”
White Electronic sees yearly sales of around $65 million.
As is typical in this type of deal, the acquired company saw its shares jump nearly 28% on a recent market value of $162 million.
Microsemi said it expects the deal to add some $7 million to $10 million to its profits for the 12 months through October 2011.
The company’s shares rose 2% in midday New York trading on a recent market value of $1.4 billion.
Microsemi is known for buying companies.
Last year, it paid $20 million for La Mirada-based Babcock Inc., a maker of power controllers and sensors for the military.
It also bought Irvine-based startup Nexsem Inc., a maker of chips that manage power in consumer electronics, for undisclosed terms.
