Companies

Case Study:

MACOM

“Summit’s unparalleled sector expertise in communications technology helped MACOM prioritize investments in new products and technologies and solidify our position as the market leader.”

John-Ocampo-MACOM

John Ocampo, Chairman of the Board

Location:
Lowell, MA
Leadership:

John Ocampo
John Croteau

Founded in:
1950
invested in:
2010
Status:

IPO 2012

NASDAQ: MTSI

Summit Team:
Peter Y. Chung
Case Study:

MACOM

Radio frequency semiconductors and components

Doubled revenues and grew EBITDA more than 5.6x during Summit’s tenure as investors

Completed several strategic acquisitions to enter the photonics market and accelerate growth

Completed IPO in March 2012 (NASDAQ: MTSI); share price has appreciated more than 300% since IPO to an enterprise value of approximately $4.0 billion in 2017

MACOM Technology Solutions (“MACOM”) is a leading supplier of high-performance RF, microwave, millimeterwave and lightwave semiconductor products. Tracing its legacy to a predecessor company founded in 1950, MACOM embarked on a new course for industry leadership in 2010 under the direction of Chairman John Ocampo, an industry veteran and cofounder of former Summit portfolio company Sirenza Microdevices. The company sought a partner to provide partial liquidity and assistance in preparing the company for the next level of growth, and Ocampo chose to work again with Summit.

How Summit helped:

  • Completed a minority growth equity investment in 2010
  • Helped recruit independent board members, Steve Daly (previously CEO of former Summit portfolio company Hittite Microwave), Gil Van Lunsen and Geoff Ribar (SVP, CFO of Cadence Design Systems)
  • Summit’s Peak Performance Group collaborated with management to develop and implement a methodology to optimize product mix and improve gross margins
  • Summit’s Capital Markets Team helped secure acquisition financing to support growth and provide partial liquidity to shareholders
  • Worked closely with management and drew on our deep sector expertise to develop an accretive acquisition strategy to enable MACOM to enter faster growth markets, including photonics/optical networking. Assisted MACOM in identifying opportunities and completing several acquisitions to expand its market opportunity and product/technology portfolio.
  • Coordinated the preparation of MACOM’s 2012 IPO (NASDAQ: MTSI), and four subsequent debt and equity financing transactions.

MACOM completed its IPO (NASDAQ: MTSI) in 2012 and has since completed two follow-on offerings. Today, MACOM is the partner of choice to the world’s leading communications infrastructure, aerospace and defense companies, helping solve their most complex challenges in areas including network capacity, signal coverage, energy efficiency and field reliability, through its best-in-class team and broad portfolio of RF, microwave, millimeterwave and lightwave semiconductor products.

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