Looking to trim some of the fat from its non-core businesses, Microsemi Corp. has agreed to sell a non-strategic component of a board level systems and packaging business to Mercury Systems Inc.
The move is designed to help Microsemi to intensify its focus and free up capital for the development of higher-value ICs and system-on-chip (SoC) offerings in the aerospace and defense, communications, industrial and storage end markets.
In a statement, James L. Peterson, chairman and CEO of Microsemi, said the resulting business model will be not only be more profitable, but the proceeds will be used to retire debt associated with the recent acquisition of PMC-Sierra.
The deal, which is expected to close in the third fiscal quarter of this year, will help Microsemi to achieve profitability from the proceeds as well as the incremental $100 million from available cash the company has. Further details regarding the divesture will be given during the company’s second fiscal quarter guidance scheduled for late April.
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