Global semiconductor specialist Skyworks Solutions is in talks to buy Microsemi, which has started a sale process, Bloomberg reported, citing people familiar with the matter. Microsemi has hired the Bank of Montreal to help with the deal, with another financial advisor. Sources stressed that discussions were still at a very early stage and could still break down. Microsemi, Skyworks and Bank of Montreal all declined to comment on the report.
Microsemi has a market valuation estimated at USD 4.7 billion while Skyworks’ is estimated at over USD 14 billion. Microsemi gets more than a quarter of its revenue from defense and security customers and another 21 percent from industrial clients, according to data from Bloomberg.
Skyworks failed in a bid to acquire PMC-Sierra, which was bought by Microsemi for USD 2.5 billion. It is now known as Microsemi Storage Solutions.
StreetInsider reported earlier this month that Microsemi was trying to sell itself.
