Skyworks Acquires SiGe - Analyst Blog
May 18 2011 - 8:09AM
Zacks
Skyworks Solutions (SWKS) announced that it
will acquire fabless semiconductor company SiGe Semiconductor for
$210 million. Additionally, the company agreed
to pay $65 million on achievement of certain milestones. The
transaction is expected to close in June, 2011.
Headquartered in Andover,
Massachusetts, SiGe Semiconductor is a provider of radio
frequency (RF) front-end solutions facilitating wireless
multimedia across a wide range of applications.
With the help of SiGe’s innovative short range, silicon-based
products, Skyworks will expand its wireless networking product
portfolio. Furthermore, the acquisition will enhance the company’s
addressable content opportunity for smart phones, tablets, gaming
consoles, notebook PCs and home automation systems.
The company expects to realize significant operational and cost
synergies from the acquisition and a consequential growth in
non-GAAP earnings as well as shareholders wealth.
Management expects an EPS of 46 cents in the third quarter of
fiscal 2011, up from 41 cents in the second quarter of fiscal 2011,
propelled by Skyworks’ broad customer base, diversification into
new markets and increasing share gains.
Skyworks Solutions is capitalizing on
proliferating demand for connection through smart phones, tablets
and home automation systems. The company also consolidates its
shares across the mobile Internet spectrum, ranging from net books
and data cards to smartphones, and even entry level
handsets. Moreover, Skyworks will gain from the rising tide of
increasing RF content associated with the 3G and 4G Platforms.
Skyworks Solutions designs, manufactures, and markets a broad
range of high performance analog and mixed signal semiconductors
that enable wireless connectivity. The primary customers include
Nokia (NOK), Motorola (MMI),
Research In Motion (RIMM) and Samsung.
NOKIA CP-ADR A (NOK): Free Stock Analysis Report
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SKYWORKS SOLUTN (SWKS): Free Stock Analysis Report
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