Macom Technology To Buy Applied Micro For 15% Premium

Macom Technology Solutions Holdings Inc. announced Monday an agreement to buy cloud infrastructure company Applied Micro Circuits Corp. in a cash and stock deal that values Applied Micro at about $722.7 million. Under terms of the deal, Macom will pay $3.25 in cash and 0.1089 of its shares for each Applied Micro share outstanding. Based on Friday's closing prices, that values Applied Micro's stock at $8.36 each, a 15% premium. Applied Micro has about 86.45 million shares outstanding, according to FactSet. Macom expects the deal, which is anticipated to close in the first quarter of 2017, to add to its adjusted earnings in fiscal 2017. "This transaction will create an industry powerhouse with the scale, deep customer relationships, innovative technology, and enabling products that will help deliver explosive growth in Enterprise and Cloud Data Centers," said Applied Micro Chief Executive Paramesh Gopi. Applied Micro's stock, which is currently halted until 7:45 a.m. ET for news, has run up 14% year to date, while Macom shares have climbed 15% and the S&P 500 has gained 6.8%.