Microsemi Corp., a leading provider of semiconductor solutions, has entered into a definitive agreement to acquire PMC-Sierra Inc., a semiconductor and software solutions leader in storage, optical and mobile networks. The transaction is valued at approximately USD$2.5-billion.
“We are pleased PMC has accepted our compelling strategic offer. We can now shift our focus to realizing the significant synergies identified during our comprehensive analysis,” says James Peterson, Microsemi’s chairman and CEO. “As we have previously stated, this acquisition will provide Microsemi with a leading position in high performance and scalable storage solutions, while also adding a complementary portfolio of high-value communications products. As we integrate the team and drive profitability, our combined company will benefit from increased scale, industry-leading margins, diversified market exposure, consolidated infrastructure and substantial cost savings.”
Microsemi anticipates achieving more than $100-million in annual cost synergies with greater than $75-million of those expected to be realized in the first full quarter of combined operations.