Microsemi Corporation (MSCC) has announced that its wholly-owned subsidiary, CNT Acquisition Corp., has successfully completed the acquisition of Centellax. The terms of the acquisition were, however, not disclosed.
Why the Acquisition?
Microsemi said that Centellax’s capabilities in millimeter-wave engineering as well as high-speed digital design were behind its decision to acquire the company.
Microsemi expects the acquired product lines and technology to increase its existing communications product portfolio while permitting it to take advantage of Centellax’s optical and Ethernet data-center expertise.
The acquisition is, however, not expected to have any direct impact on Microsemi’s expenses or revenues. In fact, the company has reaffirmed its revenue guidance for the fourth quarter of fiscal 2014. It is instead meant to improve its existing capabilities, thereby enhancing customer experience.
Microsemi Corporation is a designer, fabricator and supplier of analog, mixed-signal and discrete semiconductors. The company’s portfolio consists of semiconductor and system solutions for defense & security, communications, aerospace and industrial markets.
Centellax is known for its unconventional next-generation products intended for the high-speed communications market. Its products enable better performance at the edge of the network and are also cost effective.
The global semiconductor market is quite attractive, offering enormous opportunities for players in the business. Although revenues declined due to the overall economic downturn, it is expected to maintain the high growth momentum in the upcoming years due to the increase in demand for electronics devices as well as requirements in new application areas.
Microsemi currently holds a Zacks Rank #3 (Hold).
Other Stocks to Consider
Investors can also consider other semiconductor industry stocks such as Analog Devices, Inc. (ADI), Fairchild Semiconductor International Inc. (FCS) and Microchip Technology Inc. (MCHP), each carrying a Zacks Rank #2 (Buy).
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