Extends Leadership Position in 100G Optical
Networking Market
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.
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/
About MACOM: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.
MACOM, M/A-COM, M/A-COM Technology Solutions, M/A-COM Tech,
Partners in RF & Microwave, Partners from RF to Light, The
First Name in Microwave and related logos are trademarks of MACOM.
All other trademarks are the property of their respective
owners.
Special Note Regarding Forward-Looking Statements:This
press release contains forward-looking statements based on MACOM
management's beliefs and assumptions and on information currently
available to our management. Forward-looking statements include,
among others, statements concerning the FiBest transaction,
including those regarding any potential benefits and synergies,
perceived customer feedback, strategic plans, expansion of SAM in
Japan or elsewhere, accretion and financial and business
expectations associated with the acquisition, as well as any other
statements regarding MACOM’s plans, beliefs or expectations
regarding the transaction or its future business or financial
results. Forward-looking statements include all statements that are
not historical facts and generally may be identified by terms such
as "anticipates," "believes," "could," "estimates," "expects,"
"intends," "may," "plans," "potential," "predicts," "projects,"
"seeks," "should," "will," "would" or similar expressions and the
negatives of those terms.
Forward-looking statements contained in this press release
reflect MACOM's current views about future events and are subject
to risks, uncertainties, assumptions and changes in circumstances
that may cause those events or our actual activities or results to
differ materially from those expressed in any forward-looking
statement. Although MACOM believes that the expectations reflected
in the forward-looking statements are reasonable, it cannot and
does not guarantee future events, results, actions, levels of
activity, performance or achievements, including the successful
integration of the FiBest business or realization of any of the
projected benefits of the transaction. Readers are cautioned not to
place undue reliance on these forward-looking statements. A number
of important factors could cause actual results to differ
materially from those indicated by the forward-looking statements,
including, among others, costs associated with the acquisition,
failure to close the acquisition or achieve expected synergies,
accretion and other anticipated benefits of the transaction or to
successfully integrate the FiBest business, adverse reactions to
the acquisition by employees, customers, suppliers or competitors
of either MACOM or FiBest, greater than expected dilutive effect on
earnings from the transaction or failure to comply with applicable
covenants related to MACOM’s outstanding indebtedness, lower than
expected demand in any or all of our primary end markets or from
any of our large OEM customers based on the acquisition,
macro-economic weakness or otherwise, failures or delays by any
customer in winning business or to make purchases from us in
support of such business, lack of adoption or delayed adoption by
customers and industries we serve of GaN, Indium Phosphide lasers,
or other solutions offered by us, failures or delays in porting and
qualifying GaN or Indium Phosphide laser process technology to our
Lowell, MA fabrication facility or third party facilities, lower
than expected utilization and absorption in our manufacturing
facilities, lack of success or slower than expected success in our
new product development efforts, loss of business due to
competitive factors, product or technology obsolescence, customer
program shifts or otherwise, lower than anticipated or slower than
expected customer acceptance of our new product introductions, the
potential for increased pricing pressure based on competitive
factors, technology shifts or otherwise, the impact of any executed
or abandoned acquisition, divestiture or restructuring activity,
the impact of supply shortages or other disruptions in our internal
or outsourced supply chain, the relative success of our
cost-savings initiatives, the potential for inventory obsolescence
and related write-offs, the expense, business disruption or other
impact of any current or future investigations, administrative
actions, litigation or enforcement proceedings we may be involved
in, and the impact of any claims of intellectual property
infringement or misappropriation, which could require us to pay
substantial damages for infringement, expend significant resources
in prosecuting or defending such matters or developing
non-infringing technology, incur material liability for royalty or
license payments or prevent us from selling certain of our
products, as well as those factors described in "Risk Factors" in
MACOM's filings with the Securities and Exchange Commission (SEC),
including its Quarterly Report on Form 10-Q for the fiscal quarter
ended July 3, 2015 as filed with the SEC on August 12, 2015. MACOM
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151117006911/en/
Company Contact:M/A-COM Technology Solutions Holdings,
Inc.Bob McMullan, 978-656-2753Chief Financial
Officerbob.mcmullan@macom.comorInvestor Relations
Contact:Shelton GroupLeanne K. Sievers, 949-224-3874EVPorBrett
L. Perry, 214-272-0070Managing
Directorsheltonir@sheltongroup.com
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