IRVINE, Calif. and WESTFORD, Mass., Nov. 28, 2007 (PRIME NEWSWIRE) -- Microsemi Corporation, a world leader in the design and manufacture of high performance analog mixed signal integrated circuits and high-reliability semiconductor solutions (Nasdaq:MSCC), and Microwave Device Technology Corporation (MDT) of Westford, MA, today announced the signing of an agreement in principle for Microsemi to acquire substantially all of the assets of MDT for $7.8 million in cash.
The acquisition will enable Microsemi to both enter into the sensor market and to expand its portfolio of microwave semiconductors by adding GaAs microwave diodes to its arsenal of products. John Caruso, VP and General Manager of Microsemi's Lowell Division stated that "by adding GaAs devices to our present silicon product line, we will increase our frequency band of coverage from 24 GHz to 110 GHz. Additionally, we have added millimeter components to our existing silicon product line thus utilizing our GaAs capability for high frequency transceivers that support such products as Intrusion Alarms, Motions and Speed Detectors and other sophisticated sensor products." MDT's customers include Raytheon, Lockheed Martin, Honeywell, John Deere, LM Ericcson, Nokia, and Fujitsu.
Founded in 1988 by its president, Dr. T.B. Ramachandran, MDT is MIL-S-19500 qualified. "We are pleased to become part of the Microsemi team, as we see this combined business providing sound value for all our customers, employees and Microsemi investors alike," Ramachandran said.
"We saw significant synergy with MDT," stated Rob Adams, Microsemi's Vice President of Business Development. "Like Microsemi, MDT is a sole-source supplier to many of Microsemi's existing high-reliability semiconductor customers and its business model matches our gross margin profile for this market. MDT had sales of just over $7 million in the past twelve months and the acquisition will be accretive immediately."
James J. Peterson, Microsemi President and CEO said, "Microsemi has a long history of successfully integrating and leveraging private high-reliability suppliers and we expect the same success in acquiring MDT. We believe that there are significant efficiency gains possible on the operational level as well as the business opportunity level and, as has been our track record, we will work diligently to realize these gains."
At this time, the completion of the acquisition is expected before the end of the calendar year and is subject to customary closing conditions.
About Microsemi
Microsemi Corporation, with corporate headquarters in Irvine, California, is a leading designer, manufacturer and marketer of high performance analog and mixed-signal integrated circuits and high reliability semiconductors. The company's semiconductors manage and control or regulate power, protect against transient voltage spikes and transmit, receive and amplify signals.
Microsemi's products include individual components as well as integrated circuit solutions that enhance customer designs by improving performance and reliability, battery optimization, reducing size or protecting circuits. The principal markets the company serves include implanted medical, defense/aerospace and satellite, notebook computers, monitors and LCD TVs, automotive and mobile connectivity applications. More information may be obtained by contacting the company directly or by visiting its website at http://www.microsemi.com.
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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth in the news release that are not entirely historical and factual in nature are forward-looking statements, including without limitation statements concerning the expectation and timing of the completion of the acquisition of MDT, the benefits of the acquisition of MDT and its products, Microsemi's ability to successfully integrate and leverage the acquired company and realize synergies, the possibility of efficiency gains, and Microsemi's ability to enter into the sensor market and expand its portfolio of microwave semiconductors. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. The potential risks and uncertainties include, but are not limited to, such factors as changes in generally accepted accounting principles, the difficulties regarding the making of estimates and projections, the hiring and retention of qualified personnel in a competitive labor market, acquiring, managing and integrating new operations, businesses or assets, uncertainty as to the future profitability of acquired businesses, delays in the realization of any accretion from acquisition transactions, any circumstances that adversely impact the end markets of acquired businesses, difficulties in closing or disposing of operations or assets, difficulties in transferring work from one plant to another, rapidly changing technology and product obsolescence, difficulties predicting the timing and amount of plant closure costs, the potential inability to realize cost savings or productivity gains and to improve capacity utilization, potential cost increases, weakness or competitive pricing environment of the marketplace, uncertain demand for and acceptance of the company's products, adverse circumstances in any of our end markets including the challenging conditions in our analog/mixed-signal markets, results of in-process or planned development or marketing and promotional campaigns, changes in demand for products, difficulties foreseeing future demand, effects of limited visibility of future sales, potential non-realization of expected orders or non-realization of backlog, product returns, product liability, and other potential unexpected business and economic conditions or adverse changes in current or expected industry conditions, business disruptions, epidemics, health advisories, disasters, national emergencies, wars or potential future effects of the tragic events of September 11, 2001, variations in customer order preferences, fluctuations in market prices of the company's common stock and potential unavailability of additional capital on favorable terms, difficulties in implementing company strategies, dealing with environmental or other regulatory matters or litigation, or any matters involving litigation, contingent liabilities or other claims, difficulties and costs imposed by law, including under the Sarbanes-Oxley Act of 2002, difficulties in determining the scope of, and procuring and maintaining, adequate insurance coverage, difficulties, and costs, of protecting patents and other proprietary rights, work stoppages, labor issues, inventory obsolescence and difficulties regarding customer qualification of products, manufacturing facilities and processes, and other difficulties managing consolidation or growth, including in the maintenance of internal controls, the implementation of information systems, and the training of personnel. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in the company's most recent Form 10-K filed by Microsemi with the SEC. Additional risk factors shall be identified from time to time in Microsemi's future filings. The forward-looking statements included in this release speak only as of the date hereof, and Microsemi does not undertake any obligation to update these forward-looking statements to reflect subsequent events or circumstances.
Investor Inquiries: David R. Sonksen, Microsemi Corporation, Irvine, CA (949) 221-7101.