Macom Technology Solutions Holdings Inc (NASDAQ: MTSI) is to buy cloud infrastructure specialist Applied Micro Circuits Corp in a cash and paper deal, which will create an “industry powerhouse”.
Under the deal, Macom will pay US$3.25 in cash and 0.1089 of its shares for each Applied Micro share, valuing the latter at about US$722.7 million
The share price paid represents a 15.4% premium on the company’s closing price of $7.25 on Friday, November 18.
Macom chief John Croteau said: “This transaction will accelerate and expand MACOM’s breakout opportunity in Enterprise and Cloud Data Centers.
“MACOM will now be able to provide all the requisite semiconductor content for optical networks – analog, photonic and PHY – from the switch to fiber for long haul, metro, access, backhaul and Data Center. AppliedMicro’s 100G to 400G single-lambda PAM4 platform should perfectly complement MACOM’s leadership in analog and photonic components for Data Centers.”
Paramesh Gopi, president and chief executive at AppliedMicro added: “This transaction will create an industry powerhouse with the scale, deep customer relationships, innovative technology, and enabling products that will help deliver explosive growth in Enterprise and Cloud Data Centers.”
Macom expects the deal, which is anticipated to close in the first quarter of 2017, to add to its adjusted earnings in fiscal 2017.
Story by ProactiveInvestors