Semiconductor manufacturer Microsemi Corp. has made an offer to acquire Vitesse Semiconductor Corp.in a deal valued at $389 million, the companies announced Wednesday.

The announcement sent shares of Vitesse, in Camarillo, skyrocketing 37 percent. The deal with Microsemi, in Aliso Viejo, is expected to close before June 28.

Vitesse supplies integrated circuits for the telecommunications carriers, Internet providers and corporations. In the past year the company has made moves to supply to the “Internet of Things,” or the wireless connection between devices in both industrial and consumer applications. Vitesse has about 350 employees.

Microsemi supplies integrated circuits to telecommunications, defense, security, aerospace and industrial markets. The company has more than 3,000 employees.

Vitesse Chief Executive Chris Gardner said the acquisition will create a great combination between the companies.

“I believe Microsemi will be able to leverage Vitesse’s Ethernet technology and capabilities further into the communications market and has the scale to implement the adoption of our industrial (Internet of Things) strategy,” Gardner said in a prepared statement.

Microsemi will buy out Vitesse shareholders at $5.28 a share in cash.

“Vitesse's highly complementary technology suite will expand our product offering and accelerate growth with differentiated technology in emerging markets, while benefitting from the increased scale, consolidated infrastructure and cost savings of the combined entity,” Microsemi Chief Executive Jim Peterson said in a prepared statement.

Vitesse shares closed up $1.45, or 37 percent, to $5.34 on the Nasdaq. Shares of Microsemi closed up 82 cents, or 2.4 percent, to $34.68 on the Nasdaq.

For reprint and licensing requests for this article, CLICK HERE.