Maxim Buys Vitesse Storage Products Business

Maxim Integrated Products will acquire Vitesse Semiconductor Corp.'s Colorado Springs-based storage products business for $63 million. The chip manufacturer will incorporate Vitesse's serial attached ATA (SATA), serial attached SCSI (SAS) expander products, enclosure management products, and baseboard management products into its portfolio. The served available market (SAM) for these products is projected to be over $300 million in Maxim's 2010 fiscal year, according to a company release. Maxim expects the acquired business to boost earnings in 2008 and beyond as a result of Maxim's economies of scale and lower cost structure. Maxim will retain more than 50 Vitesse engineers and technical experts. The transaction is expected to close in the fourth quarter of 2007.