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Microsemi Acquires Defense and Security Business from Endwave
Microsemi Corp., a manufacturer of high performance analog mixed signal integrated circuits and high reliability semiconductors, and Endwave Corp., a provider of high-frequency RF solutions for mobile communications markets, announced that Microsemi has acquired Endwave’s defense electronics and security (D&S) business.
Microsemi intends to combine Endwave’s high frequency product portfolio with its own, creating one of the leading high reliability RF product offerings in the market today and covering the technology spectrum up to 100 GHz. In recent years, Endwave’s D&S group has developed many innovative, state-of-the-art products and has won several contracts to supply these products on major systems projects with many current Microsemi customers such as Boeing, Cobham, L3, Lockheed Martin, Northrop Grumman and Raytheon. This acquisition will expand opportunities for Microsemi in next-generation, high-growth defense electronics applications such as theater-wide video and voice communications, advanced radar systems, remote sensing and broadband transmission systems. In Homeland Security applications, the D&S group provides technologies for radar fencing, stand-off threat detection systems and advanced personnel screening portals. Microsemi intends to expand the D&S business into new, related markets such as satellite and space, in which the D&S technology is a natural extension of Microsemi’s ongoing thrust into the marketplace.
Under the terms of the agreement, Microsemi is acquiring the D&S assets for a total equity value of $28 M in cash plus the assumption of specified liabilities. Microsemi expects the acquisition to be accretive immediately. After removing existing corporate overhead and other allocations, Microsemi believes the D&S business will be more profitable. Microsemi is immediately integrating the acquired D&S business into its existing RF operations such that it expects gross and operating margins to conform to its existing target model by the end of this calendar year.
“The combination of Microsemi’s and Endwave’s D&S product portfolios creates a strengthened high-reliability offering for the RF Defense & Security market,” said James J. Peterson, President and Chief Executive Officer of Microsemi Corp. “Endwave’s industry-leading RF technology and its focus on emerging high-growth defense electronics and security applications makes it an excellent complement to Microsemi’s own product suite. We are delighted to add this incredible suite of technology and outstanding design engineers to our growing family of high-reliability RF products.”
“Microsemi’s track record of performance, market leadership and a blue-chip customer base enable this industry-class D&S business to fulfill its vision,” said Ed Keible, Endwave’s CEO and President. “We have worked hard to build our D&S business, and we are extremely pleased that an industry leader like Microsemi can take it to the next level.”