MACOM reached an agreement to sell the Compute business it acquired in its AppliedMicro acquisition earlier this year to Project Denver Holdings LLC , a new company backed by The Carlyle Group. Financial terms were not disclosed, but MACOM said it will hold a minority equity ownership interest in the new company.
“After a thorough review process, we are very excited about the sale of the Compute business and the opportunity it provides for both the employees of that business and our shareholders,” said John Croteau, MACOM’s President and Chief Executive Officer. “The Carlyle Group is one of the world’s largest and most successful global investment firms, with over $170 billion in assets under management. I believe NewCo’s exceptional leadership team and Carlyle’s backing combines the necessary elements to make the business a long-term success, and through a minority equity ownership MACOM is positioned to participate in the company’s long-term value creation.”
- In January 2017, MACOM Technology Solutions Holdings acquired Applied Micro Circuits Corporation (AppliedMicro”) for approximately $8.36 per share, consisting of $3.25 in cash and 0.1089 MACOM shares per share of AppliedMicro. The deal was valued at approximately $770 million on the day it was announced..
MACOM said it made the acquisition to accelerate its growth in optical technologies for Cloud Service Providers and Enterprise Network customers.
- MACOM and AppliedMicro’s pro forma combined TTM revenue was approximately $709 million including AppliedMicro’s Compute business, or approximately $644 million excluding the Compute business
AppliedMicro’s Connectivity business is highly complementary to MACOM’s product portfolio, through the addition of market-leading OTN framers, MACsec Ethernet networking components, and the industry’s leading single-lambda PAM4 platform.
- In March 2017, the company announced the sampling of its third generation 16-nanometer FinFET Server-on-a-Chip (SoC) solution, X-Gene 3. The device is an ARMv8-A compatible processor that matches comparable x86 processors in CPU throughput, per-thread performance, and power efficiency while offering advantages in memory bandwidth and total cost of ownership. It features 32 ARMv8-A 64-bit cores operating at speeds up to 3.0 GHz, eight DDR4-2667 memory channels with ECC and RAS supporting up to 16 DIMMs and addressing up to 1TB of memory and 42 PCIe Gen 3 lanes with eight controllers. The processor is expected to have a performance that is up to six times that of the currently shipping X-Gene family of products.
