Vitesse Semiconductor Corporation has announced that it has agreed to acquire Exbit Technology, a fabless semiconductor company that develops high-speed chip-sets and Intellectual Property Cores for the communications and networking industry, for $104.8 million in stock.
In connection with the acquisition, Vitesse will issue approximately 4.4 million shares of its common stock in exchange for all outstanding Exbit common stock and upon exercise of outstanding Exbit employee warrants.
Additionally, up to approximately 2.5 million shares of Vitesse common stock will be reserved for future issuance to the stockholders and warrant holders of Exbit upon achievement of certain performance goals.
The transaction is expected to be completed in the quarter ending June 30, 2001, subject to customary regulatory approvals. The transaction, which will be accounted for as a purchase, is expected to be slightly dilutive to Vitesse’s earnings per share on a pro-forma basis by approximately $0.01 per share per quarter for the second half of calendar 2001.
Based in Denmark, Exbit is said to be developing industry-leading technology in Gigabit and 10-Gigabit Ethernet switching and routing technology with focus on providing complete systems solutions for the networking equipment manufacturers.