Vitesse Semiconductor announced Monday that it will buy Exhibit Technology in an all-stock deal valued at about $95 million. Vitesse, a maker of chips for communications equipment, will issue 4.4 million of its shares for all outstanding shares of Exhibit. Camarillo, Calif.-based Vitesse expects the purchase to dilute earnings by 1 cent a share for each quarter during the second half of calendar year 2001.
Up to an additional 2.5 million shares of Vitesse stock will be awarded to shareholders of Exhibit when certain performance goals are met. Exhibit makes high-speed communication chips for Ethernet networks and operates out of Herlev, Denmark.