Microsemi considers sale with Qatalyst, sources say

23 January 2018 - 08:42 pm UTC

Author(s): by Bhavna Kaul and MaiMizuta and Yiqin Shen
Microsemi [NASDAQ:MSCC], the Aliso Viejo, California-based semiconductor company, is working with Qatalyst Partners to explore a sale, said two sources briefed on the situation.

Microsemi has been conducting management presentations with suitors, the first source said. There is more than passing interest in the company, he noted.
 
The deal talks come as the Committee of Foreign Investment in the United States (CFIUS) has been heavily scrutinizing inbound semiconductor deals. Any international buyer interest for Microsemi will likely face a careful review by CFIUS, the US interagency panel that reviews M&A deals for national security risks, a third source briefed on the matter said.
 
Microsemi develops semiconductor products for use in a number of applications, including automotive, communications, commercial aviation, defense and the space industry.

Shares have jumped more than 7% since Dealreporter reported on the talks on Tuesday to give Microsemi a USD 7.45bn market cap.

Microsemi and Qatalyst did not respond to requests for comment.