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Macom gets antitrust clearance from FTC for Mindspeed takeover
Wednesday 27 November 2013

27 November 2013 - US-based semiconductor supplier MACOM Technology Solutions said it had received antitrust approval from the Federal Trade Commission (FTC) for the USD272m (EUR201.4m) acquisition of domestic peer Mindspeed Technologies (NASDAQ:MSPD).

FTC issued a notice of early termination of the waiting period under the Hart-Scott-Rodino act, Macom said in a press release on Tuesday.

Macom announced on 5 November that it plans to wholly acquire Mindspeed in a tender offer of USD5.05 per share, which represents a premium of about 66% to the stock's market close on 4 November. It will finance the takeover with cash-on-hand and an existing revolving credit facility.

The deal was greenlighted by the boards of the two companies, but it is still subject to other customary closing conditions.

The target complements Macom's existing operations, particularly in the high-performance analog market industry, Mindspeed's CEO, Raouf Halim said in a statement earlier this month. Mindspeed develops and sells semiconductors for communications applications in the wireline and wireless network infrastructure such as enterprise networks, broadband access networks (fixed and mobile), and metropolitan and wide area networks (WAN).

Mindspeed is in advanced discussions with another buyer to dispose of its wireless activities and expects to do it before the completion of the deal with Macom. However, the outcome of the sale process will not affect the deal with Macom or its price, Mindspeed added.

The tender offer is set to expire on 17 December.

Mindspeed was advised by Morgan Stanley on the financial aspects of the acquisition, Wilson Sonsini Goodrich & Rosati PC on the legal side, while the board was consulted by Needham & Company.

Macom got financial advice from Barclays and legal counselling from Perkins Coie LLP.
Date Published: 27/11/2013
Target: Mindspeed Technologies Inc
Country: USA
Deal Size: 272m (USD)
Sector: Electronics
Type: Corporate acquisition
Financing: Cash & Debt
Status: Agreed
Buyer: M/A-COM Technology Solutions Holdings Inc
Buyer Advisor: Barclays, Perkins Coie LLP