Friday, August 24, 2007
Vitesse Sells Storage Products Business
Camarillo-based Vitesse Semiconductor said Thursday afternoon that it has agreed to sell a portion of its storage products business to Maxim Integrated Products, Inc. The deal is worth $63M in cash plus up to $12M in future earn-out. Maxim will acquire Vitesse's Serial Attached SCSI (SAS) and Serial Attached ATA (SATA) product lines, including the firm's storage management products. The deal does not include its RAID and Fibre Channel products. Vitesse also said that it has received $30M in new debt financing which it will be using to repay its existing credit facility and to invest in its business.