Analog IC vendor M/A-COM Technology Solution Holdings Inc. (Macom) has completed the sell-off of its automotive chip business to Autoliv ASP Inc.
Under the divestiture, Autoliv will pay Macom $100 million in cash plus an opportunity to receive an additional $30 million in cash based on revenue and customer order achievements through 2019.
As of Macom’s fiscal fourth quarter ending Oct. 2, 2015, its automotive business will be classified as a discontinued operation. The company says its fiscal fourth quarter revenues will be $100 to $114 million for the quarter, minus the automotive product line.
Macom wanted to rid itself of its automotive business line in order to become a pure-play high-performance analog semiconductor vendor. John Croteau, president and CEO of Macom, says that the growth of its analog business has already replaced the revenue it would be losing as a result of the divestiture of its automotive business.
Questions or comments on this story? Contact email@example.com