Microsemi Acquires Actel For $430M

FBR Capital Markets has issued a research report for Microsemi Corporation MSCC and maintains its Top Pick status, following the company's acquisition of Actel ACTL. In the report, FBR writes "Microsemi acquires Actel for $430M in cash. Microsemi continued its recent acquisition spree (third in three weeks) and announced its intent to acquire Actel (ACTL-not rated) for $20.88 per share in cash, or roughly 2.1x projected EV/Sales (2011), a 30% premium over ACTL's prior day close. This is Microsemi's largest acquisition to date, adding roughly $200M in annual revenues to the firm, a roughly 33% increase in expected calendar 2011 revenues, a meaningful positive in our view. Given the competitive bidding nature of this sale (we heard of a couple other bidders including a private equity firm), we do not think an alternative higher bid will come from another suitor as that suitor likely had ample opportunity to raise their pre-existing bid before shares of ACTL ran above $20 (Actel would have to pay a $17.5M breakup fee to Microsemi if it did break up the deal)." Microsemi Corporation closed yesterday at $18.30.