M/A-COM Technology Solutions Holdings Inc., a leading supplier of high-performance analog RF, microwave, millimeter wave and photonic semiconductor products, announced it has entered into a definitive agreement to acquire FiBest Ltd. (FiBest), a Japan-based merchant market component supplier of optical sub assemblies, in an all-cash transaction valued at approximately $60 million, or 2.4 times trailing twelve months revenue.

Anticipated benefits of the transaction include:

  •  Extends MACOM’s leadership position in 100G, 200G and 400G optical networking;
  •  Significantly expands Serviceable Addressable Market (SAM) in data centers;
  •  Provides localized leadership and robust sales channel into Japanese market; and
  •  Expected to be accretive to MACOM’s adjusted earnings per share.

Commenting on the transaction, John Croteau, President and Chief Executive Officer of MACOM, stated, “The FiBest acquisition augments MACOM’s preeminent position in optical networking components, adding high-performance packaging capability.  This will enable us to deliver more refined and validated component solutions to our transceiver customers.”

“The quality of the optical sub assembly is a major factor in achieving the performance, power efficiency and cost targets necessary for 100G in data centers – and becomes mission critical at 200G and 400G data rates.  Adding FiBest will significantly expand MACOM’s addressable market with high growth potential for 100G in data centers, as we anticipate an inflection point in demand in 2017.”

MACOM expects to fund the purchase price of the acquisition with available cash. Closing is subject to customary closing conditions and is expected to occur during the company’s fiscal first quarter of 2016.

Evercore acted as exclusive financial advisor and Ropes & Gray LLP acted as legal counsel to MACOM.

A presentation with further information on the transaction is available on MACOM’s investor relations website at: http://ir.macom.com/.