Moody’s: Microsemi unaffected by acquisition

Moody’s Investors Service said Microchip Technology Inc.'s agreement to acquire Microsemi Corp. has no immediate impact on Microsemi's ratings, including the corporate family rating of Ba2, probability of default rating of Ba2-PD, senior secured rating of Ba2, senior unsecured rating of B1 and speculative grade liquidity rating of SGL-2.

The outlook remains stable.

Microchip announced plans to acquire Microsemi for $68.75 cash per share or about $10.15 billion of enterprise value.

“The combined company will benefit from greatly increased scale and product and end market diversity, though it will likely carry a much heavier debt burden as measure by debt to EBITDA over the 12 to 18 months following closing than is currently the case for either Microchip or Microsemi,” the agency said in a news release.

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