Microsemi agrees to buy Vitesse for $389 million in cash

Semiconductor maker Microsemi Corp. plans to buy Vitesse Semiconductor Corp. for about $389 million in cash.

The companies announced the agreement Wednesday under which Microsemi of Aliso Viejo, California is offering $5.28 per share, about a 36 percent premium to Camarillo, California-based Vitesse's closing price on Tuesday.

If completed, the deal would help expand Microsemi's position as a communications semiconductor company.

"Vitesse's highly complementary technology suite will expand our product offering and accelerate growth with differentiated technology in emerging markets," said Microsemi chairman and CEO James J. Peterson, in a statement.

Microsemi expects the acquisition to add between 16 cents and 20 cents per share to earnings in the first full fiscal year after the deal closes.

The company expects the deal to close sometime in the quarter ending June 28, though Vitesse has until April to try and solicit a superior offer under the agreement.

Shares of Vitesse Semiconductor jumped $1.44, or 37 percent, to $5.33 in afternoon trading Wednesday while Microsemi rose 64 cents, or 1.9 percent, to $34.50.

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