Posted by John Keller
PHOENIX, 31 March 2010. Microsemi Corp., an Irvine, Calif.-based manufacturer of analog mixed-signal integrated circuits is acquiring White Electronic Designs Corp. in Phoenix to improve Microsemi's expertise in system-level integrated solutions, anti-tamper technology, and embedded data storage encryption, company officials announced Tuesday.
Microsemi is offering to buy White Electronic for about $100 million in cash -- or $7 per share. White's technology integrates surface mount technologies, microelectronics, and anti tamper technologies into one solution.
White specializes in integrated circuit design, assembly, and test integration, with offerings and experience in multi-chip-on-board solutions that are integrated into defense and aerospace applications.
Anti tamper technology enables White's GPS receiver products for munitions programs such as the accelerated precision mortar initiative (APMI) and the Precision Guided Kit (PGK). GPS-enabled precision reduces the 136 meters circular error probable (CEP) of conventional mortars to about 10 meters.
Improving the accuracy of mortars and other battery munitions reduces collateral damage, and enables munitions to destroy their targets using as few as two shells, White officials say.
"The combination of Microsemi's and White Electronic's product portfolios further extends Microsemi's integrated solution offering in the defense and aerospace markets with technology and capability," says James J. Peterson, president and chief executive officer of Microsemi. "White Electronic's chip level hardware solutions delay or obfuscate chip level attacks and mitigate reverse engineering and IP theft. This anti tamper capability is greatly needed today in protecting DOD-critical technologies, and especially helpful in enabling foreign military sales."
The sale is expected to close by the end of June. Microsemi expects that there will be significant cost synergies from the transaction and that Microsemi can drive gross profit levels to its own corporate target as Microsemi exits lower margin business, drives a richer product mix, and realizes operational and other cost synergies by Microsemi's fourth fiscal quarter, ended October 3, 2010.
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