California-based analogue mixed-signal integrated circuit, high reliability semiconductor and radio frequency subsystem manufacturer, Microsemi announced that it was acquiring Actel Corporation for US$430m.
Actel manufactures non-volatile, low-power…
California-based analogue mixed-signal integrated circuit, high reliability semiconductor and radio frequency subsystem manufacturer, Microsemi announced that it was acquiring Actel Corporation for US$430m.
Actel manufactures non-volatile, low-power fieldprogrammable gate array circuits (FPGA), a type of semiconductor, that can withstand large amounts of radiation.
As such one of Actel’s biggest markets are the satellite and space sectors. The company also supplies the military industrial sector.
Microsemi offered US$20.88 per share through a cash tender offer. The total transaction value is approximately US$430m, net of Actel’s projected cash balance at closing.
The transaction is not subject to a financing condition as Microsemi has received a financing commitment from Morgan Stanley in connection with the acquisition. The bank has arranged a US$375m seven-year senior term loan facility as well as a US$50m revolving credit facility to replace Microsemi’s existing revolver.
James Peterson, Microsemi’s CEO and president said: “Actel will bring the most widely-used mixed-signal, radiation-tolerant FPGA products in the aerospace and defence markets today, and the company’s products will allow Microsemi to extend its growing system-level capabilities. As Microsemi continues to move up the value chain in offering its customers system solutions that are better, faster, and more-cost effective than they can build themselves, Actel’s highly-integrated solutions will be an integral component in enabling this growth.” Stifel Nicolaus Weisel is acting as financial advisor to Microsemi with O’Melveny & Myers as legal advisor. Goldman Sachs is acting as financial advisor to Actel and its legal advisor is Wilson Sonsini Goodrich & Rosati. Additional financial advisory services were provided to Microsemi by Oppenheimer.
