NEW YORK (TheStreet) -- Vitesse Semiconductor (VTSS) shares are ballooning, up 36.63% to $5.31, on heavy volume trading Wednesday after semiconductor solutions provider Microsemi  (MSCC) agreed to purchase the high performance integrated circuits provider for $5.28 per share.

The purchase price represents a 32% premium over the stock's 30 day average trading price and values the total transaction at approximately $389 million.

"This acquisition is further evidence of Microsemi's continuing commitment to grow as a communications semiconductor company. Vitesse's highly complementary technology suite will expand our product offering and accelerate growth with differentiated technology in emerging markets, while benefitting from the increased scale, consolidated infrastructure and cost savings of the combined entity," said Microsemi chairman and CEO, James J. Peterson.

Under terms of the agreement, Vitesse is allowed to solicit superior proposals from third parties for a 21 day "go shop" period through April 7. Deutsche Bank (DB) will assist Vitesse with the go shop process.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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