MACOM divests AppliedMicro’s Compute business to Carlyle Group affiliate

MACOM Technology Solutions Holdings Inc of Lowell, MA, USA (which makes semiconductors, components and subassemblies for analog RF, microwave, millimeter-wave and photonic applications) has agreed to sell the Compute business – which it acquired in January when it bought Applied Micro Circuits Corp (AMCC) of Santa Clara, CA, USA – to Project Denver Holdings LLC (NewCo), a new company backed by The Carlyle Group. MACOM will be issued a minority equity ownership interest in NewCo.

In January, MACOM’s president & CEO John Croteau said that the Compute part of AppliedMicro did not strategically align with MACOM’s long-term product focus, and that it would be divested.

“The Carlyle Group is one of the world’s largest and most successful global investment firms, with over $170bn in assets under management,” notes MACOM’s president & CEO John Croteau. “NewCo’s exceptional leadership team and Carlyle’s backing combines the necessary elements to make the business a long-term success, and through a minority equity ownership MACOM is positioned to participate in the company’s long-term value creation,” he adds.

Equity for Carlyle’s investment came from Carlyle Partners VI, a $13bn US buyout fund. The divestment became effective concurrently with the signing of the definitive agreement, with the exception of the transfer of certain assets and entities in jurisdictions outside of the USA, which will be transferred upon receipt of applicable foreign approvals.