Advanced Power Technology Inc., one of Bend’s larger employers and few public companies, has agreed to be acquired by Irvine, Calif.-based Microsemi Corp., the companies announced Wednesday.

The deal, expected to close in the first quarter of 2006, is valued at $139 million, a Microsemi official said.

Both companies are semiconductor manufacturers specializing in high-voltage transistors and analog-signal components that have applications in industries ranging from defense to medical.

Microsemi President and CEO Jim Peterson said APT employees in Central Oregon should not worry about their job security.

”For them, it should be business as usual,” Peterson said. ‘We will be looking at our financial situation as we move forward; but right now, what they did yesterday should be what they are doing today, and what they are doing today should be what they are doing tomorrow.”

One technology analyst, however, predicts that cutbacks could be in APT’s future.

APT was founded about 20 years ago in Bend and went public in 2000.

APT’s name is likely to change to Microsemi after the deal is completed, Peterson said.

”I’m a strong advocate for any companies under the same family to switch to one name,” he said. ”I believe in the synergy of one-company, one-name.”

APT officials could not be reached late Wednesday.

But Patrick Sireta, Chairman and CEO of APT, said in a written statement: ”We are very pleased to join Microsemi’s team. This business combination will result in a very powerful value proposition to customers, investors and employees.”

In the deal, APT shareholders will receive $2 in cash and 0.435 shares of Microsemi stock per APT share. The combined value of the package adds a 29 percent premium to the closing price of APT shares Wednesday.

The deal was announced after the close of the markets.

APT shares closed at $9.49, down 0.11 percent. Microsemi shares closed at $23.45, up 2.49 percent. Both companies’ shares are traded on Nasdaq.

APT employed 146 people in Bend as of Oct. 20, when the company released its third-quarter earnings. The company, which has operations in Santa Clara, Calif., Montgomeryville, Pa., Boulder, Colo., and Bordeaux, France, employs 273 people worldwide.

Peterson added that the acquisition allows Microsemi to significantly improve both its gross and operating margins. Officials said they expect Microsemi to improve gross margin by 50 percent and operating margin by 27 percent with the acquisition.

”Together, both companies are much stronger than they are by themselves,” Peterson said. ”It brings additional strength to our product line; analysts I’ve talked to called it a perfect-storm situation.”

American Technology Research analyst Andrew Huang, who follows the semiconductor industry, agreed that the deal looks beneficial to Microsemi.

”Based on our preliminary analysis, the acquisition looks good,” Huang said from his San Francisco office. ”From a product perspective, it looks like there is little overlap; and from a financial perspective, the acquisition should contribute to Microsemi’s growth immediately.”

However, Huang cautioned that APT could experience cutbacks after the acquisition, estimating that reductions may not occur for a couple of years.

”Longer term, given Microsemi’s track record of consolidating its own manufacturing facilities, we would also expect some consolidation of (APT) plants,” Huang said. ”That’s why you do acquisitions.”

Microsemi posted net sales of $244.8 million in its fiscal year ended Sept. 26, 2004, the most recent full-year numbers available, and pro forma net income of $21.5 million.

APT posted revenues of $67.8 million in its fiscal year ended Dec. 31, 2004, and net income of $3.1 million.