MACOM to acquire AppliedMicro

Lowell, Massachusetts-based MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) has entered into a definitive agreement to acquire Applied Micro Circuits Corporation (NASDAQ:AMCC) for approximately USD8.36 per share, consisting of USD3.25 in cash and 0.1089 MACOM shares per share of AppliedMicro, the company said.

This price for each share of AppliedMicro represented a 15.4% premium over the company´s closing price of USD7.25 on Friday, November 18th. MACOM intends to divest the well-positioned but non-strategic compute business within the first 100 days of closing.

The transaction value is approximately USD770 million in diluted equity value, or approximately USD688 million net of AppliedMicro´s cash position of approximately USD82 million as of September 30, 2016.

Evercore is acting as exclusive financial advisor and Ropes & Gray LLP is serving as legal counsel to MACOM.

Morgan Stanley & Co. LLC is acting as exclusive financial advisor and Pillsbury Winthrop Shaw Pittman LLP is serving as legal counsel to AppliedMicro. The board of directors of AppliedMicro received a fairness opinion from Morgan Stanley & Co. LLC and Needham & Company, LLC.

MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog RF, microwave, millimeter wave, and photonic semiconductor solutions in the United States, the Asia Pacific, and internationally. MACOM has design centers and sales offices throughout North America, Europe, Asia and Australia.

Santa Clara, California-based Applied Micro Circuits Corporation provides silicon solutions for next-generation cloud infrastructure and data centers; and connectivity products for edge, metro, and long haul communications equipment in the United States and internationally.