Microsemi to Buy Centellax for Communications Products - Analyst Blog

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A supplier of semiconductor components into defense, aerospace, industrial and communications markets, Microsemi Corporation ( MSCC ), announced that it will buy Centellax, a California-based provider of high-speed semiconductor products.

Centellax is known for its unconventional next-generation products intended for the high-speed communications market. Its products enable better performance and are also cost effective.

The acquisition will expand Microsemi's portfolio of communications products. It will allow the company to take advantage of Centellax's optical capabilities and its Ethernet datacenter offerings, thereby benefitting Microsemi's customers.

The acquisition is, however, not meant to have any material effect on Microsemi's expenses or revenues. In fact, the company has reaffirmed its revenue guidance for the fourth quarter of fiscal 2014.

Centellax has appointed Stifel as its financial advisor and Bryan Cave LLP as its legal advisor.

The terms of the acquisition were not revealed. The closing of the acquisition is subject to conventional closing conditions.

Concurrently, Microsemi announced that it will repurchase up to $100 million of the company's common stock with its working capital. Market conditions along with corporate and regulatory decisions will decide the timing and the amount of repurchases.

Microsemi Corp. is a designer, fabricator and supplier of analog, mixed-signal and discrete semiconductors. The company's portfolio consists of semiconductor and system solutions for defense & security, communications, aerospace and industrial markets.

Microsemi currently holds a Zacks Rank #2 (Buy). Investors can also consider other semiconductor industry stocks such as Analog Devices, Inc. ( ADI ), Fairchild Semiconductor International Inc. ( FCS ) and Microchip Technology Inc.( MCHP ), each carrying a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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