Semtech Corp., a Camarillo-based chip maker, said Wednesday it would acquire privately held Sierra Monolithics Inc. for $180 million in cash.
Sierra Monolithics, based in Irvine, has 110 employees and makes chips for optical communications, microwave and wireless products. Sierra expects to report $50 million in revenue this year, Semtech said. Revenue is expected to grow 20 percent to 30 percent next year thanks to Internet video traffic, cloud computing and wireless data services.
“The combination will create a leading provider of ultra high performance wireless and communications platforms,” Mohan Maheswaran, chief executive of Semtech, said in a statement.
Semtech, which makes chips for a wide variety of products, expects the purchase to add to its earnings within a year of the deal’s closing.
In a separate release, company reported third quarter results that were lower than Wall Street expected.
After the markets closed, Semtech reported a net loss of $20.9 million (-34 cents per share) for the third quarter ended Oct. 25, compared with net income of $11.5 million, (19 cents) a year ago. Revenue fell 6 percent to $75.1 million.
The results include a tax expense of $32.8 million. Excluding one-time items, the company had net income of 19 cents per share. Analysts surveyed by Thomson Reuters on average expected earnings of 21 cents a share on revenue of $72.5 million.
The company forecast fourth quarter net income of 15 cents to 17 cents a share minus any impact from the acquisition, with revenue flat or up by as much as 4 percent.
Shares were down $1.42, or 8 percent, to $15.56 in midday trading on the Nasdaq.