Microsemi to Acquire TSI Microelectronics

January 14, 2008 by Jeff Shepard

Microsemi Corp. announced its recent acquisition of substantially all of the assets of TSI Microelectronics Corp. (TSI).

TSI was founded in 1974 to provide the U.S. Department of Defense (DoD) and its OEM contractors with a source for reliable custom hybrids and other special products used in mature, long-life defense and aerospace programs. TSI’s revenue in the last 12 months totaled $1.2 million. Total consideration for TSI was $2.0 million in cash, which includes the company’s cash position of approximately $0.6 million. Microsemi expects the acquisition will be immediately accretive.

"We believe there are several synergistic opportunities that will result from the acquisition of TSI," stated James J. Peterson, President and Chief Executive Officer of Microsemi. "First, we plan to significantly grow TSI’s business by leveraging our sales force in order to transition their current custom parts-only business into a standard products business. This refocus will result in a larger addressable market for Microsemi as well as higher growth rates. Second, and perhaps most important, we expect to utilize TSI’s advanced packaging and substrate technologies to develop high-margin and high-ASP ICs, modules and subsystems for radio frequency, microwave and millimeter wave applications."