Microsemi (MSCC) Acquires Endwave's (ENWV) Defense Electronics and Security (D&S) Business

April 30, 2009 7:26 AM EDT

Microsemi Corporation (Nasdaq: MSCC) and Endwave Corporation (Nasdaq: ENWV) 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

Under the terms of the agreement, Microsemi is acquiring the D&S assets for a total equity value of $28 million 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. [SM]

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