Microsemi Corp announced on Thursday March 24 that it will sell their Board Level Systems Business to Mercury System Inc. for $300 Million, straight cash homie. Microsemi Corp states that they were able to free up capital and are able divert more focus to developing proprietary technology, focusing in on aerospace/defense, communications, industrial, and storage.
Microsemi’s chairman and CEO, James J. Peterson stated that
"The sale of Board Level Systems Business would benefit Microsemi strategically and financially"There are different manufacturers The money used from the sale will be used to retire debt that is associated with the previous acquisition of PMC-Sierra. Back in January Microsemi outbid their competition, Skyworks Solutions Inc. with an astonishing $2.2 billion bid.
Also on the day of the announcement Microsemi congratulated Lockheed Martin on the US Navy’s’ 158th, 159th, and 160th successful test launches of the Trident II D5 Fleet Ballistic Missile. Mark Swanson, Microsemi’s global account manager stated that
"They supported Lockheed Martin with several strategic designs and products."He also stated
“We are extremely pleased to have played such an important role in support the Trident II Program”.
For 30 years, Mercury Systems has been leading in next generation of defense electronics business model. With the acquisition of Board Level Systems Business they will be able to deliver innovative solutions and world class service focusing strategically on Mercury Commercial Electronics and Mercury Defense Systems.
The sale of Board Level Systems was a home run for both Microsemi Corp & Mercury Systems. Now we will have to wait and see who can turn the acquisition into something more profitable from the outcome.