Microsemi Corp. has announced that it has come to an agreement with Mercury System Inc. to sell a "non-strategic component" of its board level systems and packaging business.

The deal is valued at ₹2,027 crore ($300 million) in cash, but financial terms are subject to price adjustment, according to Microsemi.

In a statement, Microsemi Chairman and CEO James J. Peterson, said that carving out that portion of its business would allow the company to intensify its focus and free up capital for developing proprietary technology for the company's core end markets: aerospace/defence, communications, industrial and storage.

"The resulting business model will be more profitable with better growth opportunities and, importantly, all proceeds from this sale will be used to retire debt associated with the recent acquisition of PMC-Sierra," Peterson said. Microsemi acquired PMC-Sierra Inc. in January for ₹14,864 crore ($2.2 billion) after outbidding rival Skyworks Solutions Inc.

By: DocMemory
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