M/A-COM Technology Solutions Holdings, which provides over
2,700 semiconductor products, primarily for use in networks
(including cable TV, cellular and fiber optic networks) and
aerospace & defense, announced terms for its IPO on Tuesday.
The Lowell, MA-based company plans to raise $100 million by
offering 5.6 million shares at a price range of $17.00 to $19.00.
At the midpoint of the proposed range, it would command a market
value of $857 million. The deal size is down 57% from August
2011, when the company proposed a $230 million offering in its
M/A-COM Tech saw sales increase significantly from $25 million in
fiscal year 2008 to $310 million in FY2011 before plateauing in
recent quarters. The $73 million in revenue for the 4Q11
represented a 3% decrease year over year and a 7% sequential
decline. Management attributed the results to weaker demand in
the networks segment and the October 2011 flooding in Thailand,
which affected a contract manufacturing supplier. Still, the
sequential growth rates in the two prior quarters were only 1%
and 0.1%. Gross margin for the fourth quarter stayed flat at 43%
and operating income was $8 million.
Private equity firm Summit Partners invested in 2010 and will own
approximately 21% of shares after the offering. Directors John
and Susan Ocampo together will have 57% post-IPO stake. M/A-COM
Tech plans to list on the NASDAQ under the symbol MTSI. Barclays
Capital, J.P. Morgan and Jefferies are the lead underwriters on
The most recent semiconductor company to go public, Invensense (
), is trading up 111% from its IPO price. The rest of the 2011
class has performed poorly though and are all trading below their
IPO price: Sequans (
) by 69%, BCD Semiconductor (
) by 51%, MagnaChip Semiconductor (
) by 15% and Freescale Semiconductor (
) by 8%. GCT Semiconductor (GCTS), a fabless supplier of 4G LTE
and WiMAX wireless chips, expects to price this week.