Nov. 25, 2015, 10:30 AM
- Less than a week after Pericom (PSEM - unchanged) shareholders approved Diodes' (DIOD +0.8%) planned $413M ($17.75/share) acquisition of the serial connectivity IC firm (thus turning their backs on a $19/share offer from China's Montage Technology that had financing/regulatory questions attached), the deal is officially on the books.
- Diodes CEO Keh-Shew Lu: "[T]his acquisition broadens Diodes analog footprint and adds a strong mixed-signal connectivity offering that will drive expanded product content in our target market applications. Pericom also provides an extensive timing product line that complements Diodes' standard product portfolio."
- The all-cash deal is expected to be immediately accretive. Pericom will stop trading on the Nasdaq following today's close.
Nov. 20, 2015, 2:58 PM
- Pericom Semi (PSEM +1%) shareholders have approved Diodes' (DIOD +0.6%) $17.75/share ($413M), all-cash, offer to buy the serial connectivity IC maker.
- The approval comes two days after China's Montage Technology upped its offer for Pericom to $19/share. Pericom rejected the bid, declaring it "still suffers from the fundamental flaws and significant risks that plagued [Montage's] previous offers, including financing, regulatory and other risks that make Montage's ability to close a transaction."
Nov. 18, 2015, 3:46 PM
- "[T]he Pericom Board consulted with its independent financial advisors and outside legal counsel and unanimously determined that Montage's revised offer still suffers from the fundamental flaws and significant risks that plagued its previous offers, including financing, regulatory and other risks that make Montage's ability to close a transaction substantially uncertain and significantly less likely than the closing of the transactions contemplated by Pericom's previously announced Merger Agreement [with Diodes]," says Pericom (PSEM +1.5%), turning down a new $19/share offer from China's Montage Technology.
- A shareholder meeting for Diodes' (DIOD +2.4%) $17.75/share, all-cash, deal to acquire Pericom (features committed financing) is still set for Friday.
Nov. 18, 2015, 9:32 AM
- Chinese analog/mixed-signal chipmaker Montage Technology (taken private last year) is now offering $19/share ($442M) for Pericom Semi (PSEM +1.4%), $0.50/share above its prior bid and $1.25/share above the $17.75/share ($413M) price Pericom has agreed to with Diodes (DIOD -0.3%), per its revised deal terms.
- Nonetheless, Pericom has issued a PR this morning urging shareholders to vote for the Diodes deal ahead of a Friday special meeting. The company originally announced a $17/share deal with Diodes in September.
- Pericom is currently trading at $17.91.
Sep. 3, 2015, 9:38 AM
- Diodes (NASDAQ:DIOD) is acquiring connectivity/timing IC vendor Pericom Semi (NASDAQ:PSEM) for $17/share, or $400M, in cash. The price represents a 40% premium to Pericom's Wednesday close.
- The purchase is expected to be immediately accretive, and be financed in large part by debt - Diodes recently upped its credit facility by $200M. It's expected to close in Q4.
- Diodes CEO Keh-Shew Lu: "This transaction broadens Diodes' analog footprint and adds a strong mixed-signal connectivity offering that will drive expanded product content in target market applications. Also, Pericom's extensive timing product lines complement Diodes' standard product portfolio and broaden our analog footprint." Like Diodes, Pericom is exposed to a wide variety of consumer electronics, networking/telecom, and enterprise IT end-markets.
- Pericom is halted. Diodes has moved higher.
- Update (10:04AM ET): Pericom has resumed trading, and is up 37.5% to $16.75.
Jun. 17, 2014, 6:58 PM
- The consolidation wave that has hit the semi industry could soon yield tax inversion deals for foreign firms similar to deals seen in the healthcare industry, says FBR's Christopher Rolland.
- Inversion deals allow U.S. companies buying foreign firms to see lower tax rates if less than 80% of the equity in the new company is owned by legacy U.S. shareholders, and the post-merger company has substantial foreign ops.
- Rolland thinks ARM (ARMH), NXP (NXPI), Mellanox (MLNX), and Taiwan's MediaTek could be among the foreign companies targeted by U.S. chipmakers. Worth noting: Mellanox sells more than just chips, and ARM's business model depends on the company maintaining a neutral status within the industry.
- Meanwhile, Nomura's Romit Shah names 15 potential M&A candidates, and divides them into 3 groups: "Sub-scale companies" with high margins and strong IP; "strategic companies" with compelling product lines; and "undervalued companies."
- Shah's "sub-scale companies:" IDTI, ISIL, MTSI, MCRL, SMTC, SLAB.
- "Strategic companies:" ALTR, AMCC, ATML, CAVM, MPWR, BRCM ($22.5B market cap could make it tough to digest).
- "Undervalued companies:" DIOD, IRF, MSCC.
Dec. 26, 2012, 4:31 PM
Diodes (DIOD) is buying BCD Semiconductor (BCDS), a Chinese analog chipmaker incorporated in the Cayman Islands, for $151M in cash, or $8/share. The price represents a 101% premium to BCD's close. BCD, which has $39M in cash/equivalents and has posted $112M in revenue over the last 12 months, expands Diodes' analog product line and gives it a chance to cross-sell to the major Chinese OEMs that rely on BCD. (PR)| Dec. 26, 2012, 4:31 PM
Sep. 28, 2012, 9:32 AM
Diodes (DIOD) is buying Power Analog Microelectronics (PAM), a maker of advanced/high-voltage analog chips, for an undisclosed sum. PAM's product line includes LED drivers, audio amplifiers, and high-end power converters - the purchase appears to be an attempt by Diodes, which made its name offering more basic analog chips, to move upmarket.| Sep. 28, 2012, 9:32 AM