MACOM Technology Solutions Holdings, Inc. of Lowell Massachusetts USA, reported that it has agreed to sell the Compute business it acquired earlier this year as part of its AppliedMicro acquisition to Project Denver Holdings LLC (NewCo), a new firm backed by The Carlyle Group. Under the terms of sales agreement, the Carlyle Group will give MACOM a minority equity ownership interest in NewCo.
Carlyle Partners VI, a $13 billion U.S. buyout fund supplied the equity for Carlyle’s investment in MACOM’s Compute business. The signing of the definitive agreement marked the completion of the divestment transaction. However, receipt of applicable foreign approvals will be required before certain assets and entities can be transferred in jurisdictions outside of the United States.
“After a thorough review process, we are very excited about the sale of the Compute business and the opportunity it provides for both the employees of that business and our shareholders,” said John Croteau, MACOM’s president and CEO. “I believe 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.”
Patrick McCarter, co-head of Carlyle’s global Technology, Media & Telecom team, said, “We are excited to partner with MACOM on this investment and look forward to working with the team to create value.”