Back to Back Buys for Skyworks - Analyst Blog
May 27 2011 - 1:18PM
Zacks
Skyworks Solutions Inc. (SWKS) announced that
it will acquire an analog semiconductor company Advanced
Analogic Technologies Incorporated (AATI) for $6.13 per
share.
Headquartered in Silicon Valley, Advanced Analogicis a provider
of power management semiconductors for mobile consumer electronic
devices, such as wireless handsets, notebook and tablet computers,
smartphones, digital cameras, and digital audio players.
The offer price of $6.13 per share is at a 52% premium to
Advanced Analogic 30-day trailing average. Under the terms of the
acquisition, Skyworks would pay $3.68 a share in cash and the
balance in a ratio of 0.08725 shares of Skyworks’ common stock for
each outstanding share of Advanced Analogic.
The company stated that analog semiconductor products of
Advanced Analogic are complementary to Skyworks’ portfolio, and
consequently, enable expansion of the company’s portfolio and entry
into new vertical markets. Furthermore, Skyworks is expected to
capitalize on its strong smartphone, tablet set-top-box and
infrastructure positions.
Gartner, a leading independent market research firm, estimates
that the total available market for the analog power management
should grow to $12.1 billion by 2014 from $9.9 billion in 2010.
The succcessful conclusion of the transaction depends on
the approval of Advanced Analogic's shareholders and is
expected to be accretive to Skyworks non-GAAP earnings.
Skyworks also announced that it will acquire fabless
semiconductor company SiGe Semiconductor for $210 million. In
addition, the company agreed to pay $65 million on the achievement
of certain milestones. The transaction is expected to close in
June, 2011.
Management expects that Skyworks will enhance its wireless
networking product portfolio on the back of SiGe’s innovative short
range, silicon-based products. This acquisition will also expand
the company’s addressable content opportunity for smart phones,
tablets, gaming consoles, notebook PCs and home automation
systems.
Moreover, the company expects to realize significant operational
and cost synergies from the acquisition, which will lead to a
growth in non-GAAP earnings as well as shareholders wealth.
Skyworks Solutions designs, manufactures, and markets a broad
range of high performance analog and mixed signal semiconductors
that enable wireless connectivity. The company directly competes
with Anadigics, Inc. (ANAD), RF Micro
Devices Inc. (RFMD) and TriQuint Semiconductor,
Inc. (TQNT).
ADV ANALGC TECH (AATI): Free Stock Analysis Report
ANADIGICS CORP (ANAD): Free Stock Analysis Report
RF MICRO DEVICE (RFMD): Free Stock Analysis Report
SKYWORKS SOLUTN (SWKS): Free Stock Analysis Report
TRIQUINT SEMICO (TQNT): Free Stock Analysis Report
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