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Microchip buys Microsemi for $10bn

Steve Sanghi, Microchip

Microchip is to buy Microsemi in a deal which values the latter at about $10billion. The move follows a period of speculation about Microsemi being an acquisition target.

“We are delighted to welcome Microsemi to become part of the Microchip team and look forward to closing the transaction and working together to realise the benefits of a combined team pursuing a unified strategy,” said Steve Sanghi, pictured, Microchip’s chairman and CEO.

“Joining forces and combining our complementary product portfolios and end market exposure will offer our customers a richer set of solution options to enable innovative and competitive products for the markets they serve,” Ganesh Moorthy, Microchip’s president and COO, added.

Microchip has been building its portfolio for some time, with one of its most recent acquisitions being Atmel. Acquiring Microsemi is likely to create further opportunities in the data centre, communications, defence and aerospace markets. It also brings access to FPGA technology.

“Microchip continues to view accretive acquisitions as a key strategy to deliver incremental growth and stockholder value,” Sanghi noted. “The Microsemi acquisition is the latest chapter of this strategy.”

The deal is expected to be completed by the middle of 2018.

Author
Graham Pitcher

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