Microsemi Corp. (Nasdaq: MSCC) is buying Vitesse Semiconductor Corp. (Nasdaq: VTSS) for $389 million.
Vitesse, headquartered in Camarillo, California, designs semiconductors and other types of technology embedded within electronics or software used in the mobile, cloud and industrial markets. The purchase price works out to $5.28 per share. Vitesse's stock closed at $3.89 on March 17, before the deal was announced.
The deal helps Microsemi grow as a communications semiconductor company. The Aliso Viejo, California-based business makes semiconductors for the communications, defense and security, aerospace and industrial markets.
The transaction follows several other semiconductor deals. Earlier in March, Dutch chipmaker NXP Semiconductors agreed to pay $11.8 billion for Freescale Semiconductor Ltd. In January, Lattice Semiconductor Corp. (Nasdaq: LSCC) agreed to buy Silicon Image Inc. (Nasdaq: SIMG) for $600 million.