Skyworks Solutions announced its deal to acquire PMC for approximately $2 billion in cash – to boost its analog, RF and mixed signal semiconductor business.
Skyworks expects annual revenues of more than $4 billion with gross margin in the 55 percent range and operating margin exceeding 40 percent.
“With our acquisition of PMC, Skyworks will be uniquely positioned to capitalize on the explosive demand for high performance solutions that seamlessly connect, transport and store Big Data,” said David J Aldrich, chairman and chief executive officer of Skyworks.
Skyworks aims to leverage PMC’s storage systems, flash controllers, optical switches and network infrastructure solutions to expand its engagements with OEMs and ODMs as well as emerging hyperscale data center customers.
PMC enables Skyworks to expand its market within cloud storage and optical networking.
Skyworks aims to fund the acquisition with cash on hand from the combined companies and with new, fully-committed debt financing. Skyworks expects to deliver approximately $880 million in revenue in the fourth quarter of fiscal 2015.