Chip maker Microsemi to buy Actel for about $430 million to expand its product offerings

Monday, October 4, 2010

Microsemi to purchase Actel for about $430 million

IRVINE, Calif. — Microsemi Corp. is buying Actel Corp. for about $430 million in order to expand its product offerings.

The chip maker, which will start a cash tender offer, said Monday that it will pay $20.88 per share, which is a 30 percent premium to Actel’s Friday closing price of $16.02.

Actel, which makes power-management components used by several industries, is based in Mountain View, Calif.

Both companies’ boards have approved the transaction.

Microsemi said it received a financing commitment from Morgan Stanley Senior Funding Inc. that includes a $375 million, seven-year senior term loan facility and a $50 million revolving credit agreement that replaces an existing facility.

Microsemi anticipates the acquisition adding 22 to 28 cents per share to earnings in 2011.

The deal is expected to close in Microsemi’s fiscal first quarter.

Microsemi, based in Irvine, Calif., also maintained its fiscal fourth quarter earnings forecast of 33 to 35 cents per share. Analysts polled by Thomson Reuters, whose estimates typically remove one-time items, predict earnings of 34 cents per share.

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