Shares of White Electronic closed Monday at $5.46.
Microsemi, in a statement Tuesday, said it expects the deal to close in its fiscal third quarter ending June 27. The boards of both companies approved the deal.
Microsemi said it would finance the acquisition using its cash on hand and no debt will be incurred.White Electronic makes anti-tamper technologies for weapon systems. "The combination of Microsemi's and White Electronic's product portfolios further extends Microsemi's integrated solution offering in the defense and aerospace markets with superior technology and capability," said James Peterson, Microsemi's CEO and president, in a statement. Microsemi said it expects the acquisition to add 8 cents to 12 cents a share to earnings in fiscal 2011. -- Reported by Joseph Woelfel in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.