10 September 2014

Microsemi acquiring Centellax; announces $100m stock repurchase program

Microsemi Corp of Aliso Viejo, CA, USA (which designs and makes analog and RF devices, mixed-signal integrated circuits and subsystems) has agreed to acquire Centellax of Santa Rosa, CA, USA, a supplier of high-speed analog and RF semiconductor products for the optical communications and Ethernet datacom markets.

With a design team combining capabilities in millimeter-wave engineering and high-speed digital design, Centellax makes products designed specifically for high-speed communications markets. Microsemi says that the acquired product lines and technology will expand its existing communications product portfolio while allowing it to leverage Centellax’s optical and Ethernet data-center capabilities.

“The high-speed design and packaging capabilities of Centellax are at the very edge,” comments Microsemi’s chairman & CEO James J. Peterson. “We look forward to incorporating its leading-edge designs into our ever expanding communications product portfolio.”

The transaction is not expected to have a material effect on Microsemi’s revenues or expenses. Further, Microsemi reaffirms its revenue guidance for its fiscal fourth-quarter 2014.

Microsemi announces $100m stock repurchase program

Microsemi’s board of directors has authorized the repurchase of up to $100m of the firm’s common stock. The timing and amount of repurchase transactions under this program will depend on market conditions and corporate and regulatory decisions. The purchases will be funded from available working capital.

Microsemi says that the share repurchase program is an efficient method for returning excess cash to its shareholders. The firm has consistently reduced debt and strengthened its cash flow generation over the last five years, and continues to execute on its business plan to grow shareholder value.

The authorization permits the firm to repurchase up to $100m of common stock before end-September 2016. The program does not obligate Microsemi to acquire any particular amount of common stock, and may be modified or suspended at any time at the firm’s discretion.

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