MACOM expands 100G play with Mindspeed acquisition

M/A-COM Technology Solutions Holdings, Inc. (MACOM; NASDAQ: MTSI) is ready to make a larger splash in the market for 100-Gbps electronics now that it has closed its acquisition of Mindspeed Technologies, Inc. (NASDAQ: MSPD). The new assets, which officially became a part of MACOM December 18, expand the semiconductor developer’s 100G portfolio from long-haul drivers to a full range of ICs for 100G optical transceivers, according to Ray Maroney, product line manager at MACOM.

The deal, which saw MACOM acquire Mindspeed for $5.05 per share in cash that translated into a diluted equity value of $272 million (see “MACOM to acquire Mindspeed for $272M”), strengthens the company’s play in high-performance analog (HPA) semiconductors. This will position MACOM to participate in a wider variety of markets, including RF microwave and access network applications. It also will expand the company’s materials expertise. Maroney points out that MACOM’s traditional strength had been in III-V processes, and the Mindspeed portfolio will include a variety of silicon-based technologies, particularly SiGe.

However, Maroney confirmed that MACOM continues to believe that Mindspeed’s communications processor business is not a good fit for its new owner, and that MACOM is investigating divestiture options.

Looking ahead, Maroney said that MACOM will seek to optimize its new technology portfolio to improve performance, lower power consumption, and reduce size. He said the company’s packaging expertise should prove advantageous in subsequent generations of devices originally developed at Mindspeed.

“I am pleased to announce the successful completion of the Mindspeed tender. I believe the acquisition will firmly position MACOM as a leading global provider of high performance analog (HPA) solutions for high-speed networking as well as enterprise applications,” said John Croteau, MACOM president and CEO, via a press statement issued December 18. “We'll be squarely focused during the next 100 days on integration, realizing synergies and leveraging Mindspeed's high-growth, high-margin HPA portfolio to grow market share."

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