Microsemi Corp. has finalized its acquisition of Vitesse Semiconductor Corp., creating a merged company that will compete in the highly competitive Internet of Things (IoT) market.
Microsemi (Aliso Viejo, Calif.) paid $5.28 for each outstanding share of Vitesse, or about $389 million in total.
When the merger was first announced, then CEO of Vitesse Chris Gardner said Microsemi would be able to leverage Vitesse’s Ethernet technology and capabilities to further its position in the communications market as well as play an important role in the industrial IoT market. Gardner says the two companies together will be able to target a market that is worth $1 billion currently and expected to triple to $3 billion by 2020.
Microsemi says it expects the acquisition of Vitesse to be accretive in its first full quarter, ending Sept. 27. The company expects to realize about $20 million in cost savings related to synergies on an annual basis.
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