Microsemi to Acquire Compensated Devices and New England Semiconductor

June 13, 2001 by Jeff Shepard

Microsemi Corp. (Irvine, CA) has entered into agreements in principle to acquire Compensated Devices Inc. (CDI, Melrose, MA) and New England Semiconductor Corp. (NES, Lawrence, MA). Microsemi believes that the acquisitions will strengthen its product offering with space- and military-qualified Schottky diodes and high-reliability bipolar transistors. Microsemi will pay $11.5 million and $9.1 million, respectively, for CDI and NES in a combination of cash and one-year notes that are payable in cash and/or shares of common stock, at Microsemi’s option.

Jim Peterson, president and CEO of Microsemi, stated, “The acquisitions of NES and CDI enhance our opportunities to achieve our goals for top-line growth and capacity utilization as a result of stronger military and aerospace market conditions and our program to enhance capacity utilization.