MACOM Transfers Equity Interest in Ampere for $127.7 Million

Rhea-AI Summary

MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) has successfully sold its equity interest in Ampere Computing Holdings LLC to Denver Acquisition Corp. for approximately $127.7 million. This sale was executed as part of a pre-existing agreement dating back to 2017 when MACOM divested its ARM-based compute processor business. The transaction is expected to result in a gain on MACOM's GAAP Statement of Operations for the fiscal quarter ended December 31, 2021, reflecting the difference between the cash consideration and the carrying value of the investment.

Positive

• Realized $127.7 million from the sale of Ampere equity.
• Anticipated gain on GAAP Statement of Operations for fiscal quarter ended December 31, 2021.

Negative

• None.

LOWELL, Mass.--(BUSINESS WIRE)-- MACOM Technology Solutions Holdings, Inc. (“MACOM”) (NASDAQ: MTSI) today announced that it has completed the sale of its equity interest in Ampere Computing Holdings LLC (“Ampere”) to Denver Acquisition Corp., an affiliate of one of Ampere’s other limited liability company members (“Purchaser”). Purchaser exercised its right to purchase MACOM’s entire equity interest in Ampere in exchange for a predetermined cash consideration amount of approximately $127.7 million.

Ampere was established in 2017 when MACOM divested its ARM-based compute processor business of Applied Micro Circuits Corporation. In consideration for the divestiture, MACOM received a minority equity interest in Ampere with limited rights. Purchaser exercised its right to purchase all of MACOM’s equity in Ampere for a value that was determined in 2017 at the time Ampere was established.

In conjunction with this transaction, MACOM expects to record a gain on its GAAP Statement of Operations for the fiscal quarter ended December 31, 2021, reflecting the difference between the cash consideration and the carrying value of its Ampere investment, as of the date of sale.

About MACOM

MACOM designs and manufactures high-performance semiconductor products for the Telecommunications, Industrial and Defense and Datacenter industries. MACOM services over 6,000 customers annually with a broad product portfolio that incorporates RF, Microwave, Analog and Mixed Signal and Optical semiconductor technologies. MACOM has achieved certification to the IATF16949 automotive standard, the ISO9001 international quality standard and the ISO14001 environmental management standard. MACOM operates facilities across the United States, Europe, Asia and is headquartered in Lowell, Massachusetts. To learn more, visit www.macom.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211227005030/en/

MACOM Technology Solutions Holdings, Inc.

Stephen Ferranti

Vice President, Strategic Initiatives and Investor Relations

P: 978-656-2977

E: stephen.ferranti@macom.com

Source: MACOM Technology Solutions Holdings, Inc.

FAQ

What is the recent transaction involving MACOM Technology Solutions (MTSI)?

MACOM Technology Solutions announced the sale of its equity interest in Ampere Computing Holdings LLC to Denver Acquisition Corp. for approximately $127.7 million.

How much did MACOM receive from the sale of Ampere?

MACOM received approximately $127.7 million for its entire equity interest in Ampere.

When will the sale of Ampere impact MACOM's financials?

The transaction is expected to reflect a gain in MACOM's GAAP Statement of Operations for the fiscal quarter ended December 31, 2021.