Vitesse Sells Part of Storage Business

Vitesse Semiconductor Corp. has sold off part of its storage products business in a move that will narrow the company focus on the networking and Ethernet markets. The $63 million deal between Camarillo-based Vitesse gives Maxim Integrated Products Inc. two expander product segments, enclosure and baseboard management devices. The products being divested account for approximately $20 million of Vitesse’s consumption during the 12 months ended June 30. The company also announced receiving $30 million in new financing. That money plus the proceeds from the storage products business sale will be used to repay its existing credit facility and for investment. “As a result of these transactions, Vitesse is better focused on its core Networking and Ethernet markets where we have strong competitive advantages and can be a leader,” said company CEO Christopher Gardner. “Further, we are now positioned with the right capital base to build a sustainable business model and invest in our future growth.”