Lowell, Mass.-- M/A-COM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) (MACOM), a leading supplier of high-performance analog RF, microwave, millimeterwave and photonic semiconductor products, today announced it has entered into a definitive agreement to acquire FiBest Limited (FiBest), a Japan-based merchant market component supplier of optical sub assemblies, in an all-cash transaction valued at approximately $60 million, or 2.4 times trailing twelve months revenue.
“The FiBest acquisition augments MACOM’s preeminent position in optical networking components, adding high-performance packaging capability. This will enable us to deliver more refined and validated component solutions to our transceiver customers.”
Anticipated benefits of the transaction include:
Extends MACOM’s leadership position in 100G, 200G and 400G optical networking;
Significantly expands Serviceable Addressable Market (SAM) in data centers;
Provides localized leadership and robust sales channel into Japanese market; and
Expected to be accretive to MACOM’s adjusted earnings per share.
Commenting on the transaction, John Croteau, President and Chief Executive Officer of MACOM, stated, “The FiBest acquisition augments MACOM’s preeminent position in optical networking components, adding high-performance packaging capability. This will enable us to deliver more refined and validated component solutions to our transceiver customers.”
“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. 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 purchase price of the acquisition with available cash. Closing is subject to customary closing conditions and is expected to occur during the company's fiscal first quarter of 2016.
Evercore acted as exclusive financial advisor and Ropes & Gray LLP acted as legal counsel to MACOM.
A presentation with further information on the transaction is available on MACOM’s investor relations website at: http://ir.macom.com/
M/A-COM Technology Solutions Holdings, Inc. (www.macom.com) is a leading supplier of high-performance analog RF, microwave and millimeterwave and semiconductor photonic products that enable next-generation Internet and modern battlefield applications. Recognized for its broad catalog portfolio of technologies and products, MACOM serves diverse markets, including high speed optical, satellite, radar, wired and wireless networks, automotive, industrial, medical and mobile devices. A pillar of the semiconductor industry, we thrive on more than 60 years of solving our customers' most complex problems, serving as a true partner for applications ranging from RF to Light.
Headquartered in Lowell, Massachusetts, MACOM is certified to the ISO9001 international quality standard and ISO14001 environmental management standard. MACOM has design centers and sales offices throughout North America, Europe, Asia and Australia.