Irvine-based Microsemi Corp., a maker of chips for military, aerospace and industrial uses, is set to acquire a Phoenix chipmaker for $100 million.
The all-cash deal is expected to close during the current quarter.
White Electronic Designs Corp. designs, assembles and tests chips used primarily by the military.
It specializes in an anti-tamper technology that’s built into GPS-guided weapons deployed in Afghanistan.
“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 is especially helpful in enabling foreign military sales.”
White Electronic sees yearly sales of around $65 million.
The move is set to boost Microsemi’s bottom line.
Microsemi said it expects the deal to add some $7 million to $10 million to its profits for the 12 months through October 2011.
“White Electronic currently generates gross margins of about 40%, though we expect Microsemi should be able to increase this towards 50% to 55% by removing manufacturing overhead, improving yields and eventually consolidating production into existing facilities,” Craig Berger, an analyst at FBR Capital Markets Corp., said in a note to clients.
White Electronic currently employs about 200 people, primarily in manufacturing, with about 40 engineers.
Microsemi is a frequent buyer.
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.
“Microsemi’s acquisition of White Electronic is right in its wheelhouse, consistent with its goal of acquiring defense and aerospace products, technical capabilities, scale, (and the ability to) cross-sell a larger portfolio of products to top customers,” Berger said. “This acquisition also supports Microsemi’s stated goals of 20% annual revenue growth through a combination of organic growth and acquisitions. White Electronic’s key technologies dovetail nicely with Microsemi’s existing product offering.”
Berger has an “outperform” rating on Microsemi’s stock and reiterated that the stock is his company’s “top pick for 2010.”
Microsemi had a market value of $1.4 billion last week.
Million Mark
Irvine-based startup YouMail Inc. said last month its voicemail software has hit 1 million registered users.
The benchmark was driven largely by downloads of YouMail’s smartphone applications during the past year.
YouMail has free applications available for iPhone, Android and BlackBerry and a paid application available for Palm Inc.’s smartphones.
Its software service is known as “visual voicemail,” which allows cell phone users to see an onscreen list of who called and at what time to select only the messages they want to hear.
The service lets you pick up voicemails on a phone or any Internet-connected device. The messages essentially become digital files that can be sent to another person, an e-mail inbox or saved online.
YouMail has raised nearly $10 million to date from the Tech Coast Angels and VantagePoint Venture Partners.
WebVisible Hiring
Irvine-based WebVisible Inc., an online advertising search company for small and midsize businesses, doubled its employee count last year and plans to do the same again this year.
The startup recently said it’s looking to hire some 50 sales people this year.
WebVisible is set to invite those who make it past the first screening to an open house recruiting event at the company’s headquarters later this month.
Managers there will give tours, show videos and talk with applicants.
“We continue to grow and expand our operations and sales channels, so there is a tre-mendous amount of opportunity for success and advancement here,” said Veena Chillar, vice president of human resources. “We know there are a lot of highly qualified people out there looking for work, and we know
that the search itself can be the toughest job around.”
The big hiring push comes off a $20 million round of venture funding in February. It’s raised an estimated $37 million to date.
WebVisible’s software, called Geneva, automates the process of buying online advertising.
Instead of business owners sorting through all the online ad options and processes, WebVisible’s software asks for some simple information and places online ads for a company.
The company doesn’t disclose financials but said it doubled revenue last year.
