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18 November 2015

MACOM agrees to acquire optical sub-assembly supplier FiBest

M/A-COM Technology Solutions Holdings Inc of Lowell, MA, USA (which makes semiconductors, components and subassemblies for analog RF, microwave, millimeter-wave and photonic applications) has entered into a definitive agreement to acquire Japan-based FiBest Ltd (a merchant-market component supplier of optical sub-assemblies) in an all-cash transaction valued at about $60m (2.4 times trailing 12-months revenue).

MACOM expects benefits of the transaction to include:

  • extending MACOM's position in 100G, 200G and 400G optical networking;
  • expanding the serviceable addressable market (SAM) in data centers;
  • providing localized leadership and a robust sales channel into the Japanese market; and
  • being accretive to MACOM's adjusted earnings per share.

"The FiBest acquisition augments MACOM's preeminent position in optical networking components, adding high-performance packaging capability," says MACOM's president & CEO John Croteau. "This will enable us to deliver more refined and validated component solutions to our transceiver customers," he adds.

"The quality of the optical sub-assembly is a major factor in achieving the performance, power efficiency and cost targets necessary for 100G in data centers – and becomes mission critical at 200G and 400G data rates," continues Croteau. "Adding FiBest will significantly expand MACOM's addressable market with high-growth potential for 100G in data centers, as we anticipate an inflection point in demand in 2017."

MACOM expects to fund the acquisition with available cash. Closing is subject to customary closing conditions and is expected to occur during the firm's fiscal first-quarter 2016.

Tags: M/A-COM

Visit: www.fibest.com

Visit: www.macomtech.com

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