Thu, Oct. 29, 3:19 PM
- Raytheon's (RTN -0.5%) Websense security software unit is buying Intel's (INTC -1.8%) Finnish Stonesoft firewall/next-gen firewall unit, which was acquired by the chip giant in 2013 for $389M. Terms are unknown for now.
- Trade site CRN has picked up a memo from Websense CEO John McCormack confirming the deal. The memo states Websense will be adding 300 employees, and that the deal is expected to close by year's end.
- Stonesoft's hardware has been sold under the McAfee brand. From all indications, it has had a tough time competing against the likes of Cisco, Palo Alto Networks, Fortinet, and Check Point.
- Earlier this year, Intel re-branded its McAfee unit as Intel Security, and formerly integrated the business with the rest of the company. More recently, Intel unveiled a security strategy focused on cloud and endpoint (device) protection. A new version of McAfee Endpoint Security (version 10.X) was announced, as was a new threat-detection/incident-response tool called McAfee Active Response.
Fri, Oct. 9, 2:49 PM
- Reuters reports EU regulators have approved Intel's (NASDAQ:INTC) planned $54/share ($16.7B) acquisition of Altera (ALTR +1.3%), following September clearance from the DOJ. Regulatory approval has been widely expected - Intel doesn't compete with Altera's core FPGA products, and Xilinx remains a formidable rival FPGA supplier.
- Altera still trades $1.60 below Intel's buyout price. SA author Chris DeMuth Jr. has been arguing a good merger arb opportunity exists. He estimated yesterday Altera's net arbitrage spread (diminished a bit today) spelled a 15% annual return.
- 3 days ago: Altera shareholders approve Intel deal
Tue, Oct. 6, 6:37 PM| Tue, Oct. 6, 6:37 PM | 3 Comments
Fri, Oct. 2, 2:30 PM
- Microsoft (MSFT +0.9%) has bought Havok, developer of a widely-used 3D physics engine and related tools for game developers, from Intel (INTC +0.7%) for an undisclosed sum. Intel bought Havok in 2007, reportedly for ~$110M.
- Game developers that have used Havok include Activision, Electronic Arts, Sony, Nintendo, and Microsoft itself. Microsoft declares the purchase complements its existing developer tools and platforms, such as Visual Studio, DirectX, and Azure, and promises to continue supporting 3rd-party game developers and Sony/Nintendo consoles.
- Microsoft: "Havok shares Microsoft’s vision for empowering people to create worlds and experiences that have never been seen before, and we look forward to sharing more of this vision in the near future." The purchase follows last year's $2.5B acquisition of Minecraft developer Mojang, and comes as Redmond both gets set to launch its HoloLens augmented reality headset (will support gaming in addition to enterprise/productivity apps). and partners with Oculus to support the use of its Rift VR headset with Windows 10 PCs.
Fri, Jul. 24, 4:07 AM
- With the possibility of a Qualcomm (NASDAQ:QCOM) split afloat, an interesting piece of analysis has surfaced on Wall Street, pointing towards Intel (NASDAQ:INTC) as the best possible beau if the firm decides to break itself up.
- "The chip deal to end all chip deals," said Cowen analyst Timothy Arcuri.
- Other suitors for Qualcomm's chip business, valued at $30B-$40B, could include a consortium backed by the Chinese government and Samsung Electronics (OTC:SSNLF).
Tue, Jul. 14, 3:00 PM
- Micron (NASDAQ:MU) is close to $20 following a WSJ report stating China's Tsinghua Unigroup is prepping a $23B ($21/share) bid. Credit Suisse has upgraded to Outperform, and Morgan Stanley and Drexel Hamilton to Neutral ratings.
- Not surprisingly, many analysts argue a much higher bid will be needed to win over management and/or are doubtful regulators would allow a Chinese company to buy Micron. UBS' Stephen Chin: “Valuation appears low as a potential $21 a share bid is 8.3 times fiscal year 2016 PE or low end of the historic range of 7 to 15 times whereas Micron’s stock was at $32 just 5 months ago.”
- Cowen's Tim Arcuri: "We think that the US DOJ would not allow this to happen given the increasingly strategic nature of DRAM to INTC and the US technology sector ... we do not completely rule out the possibility that China may have made this bid solely in order to show it remains committed to building a larger semiconductor industry despite the significant stock market correction in its domestic market."
- At the same time, Arcuri thinks Intel (NASDAQ:INTC) could potentially be interested in acquiring Micron, given the companies' NAND JV and Intel's "understanding of the growing importance of DRAM and NAND on its new Purley server platforms."
- Summit Research's Srini Sundarajan, who previously argued a Chinese firm could make a bid, thinks China is motivated by its massive DRAM spending - currently $13B, set to rise to $20B. Morgan Stanley's Joseph Moore, who downgraded ahead of Micron's earnings, now thinks a Tsinghua bid puts a floor on shares.
- NAND rival SanDisk is rallying amid hopes, it, too, could get a buyout offer.
Mon, Jul. 13, 8:14 PM
- State-owned Chinese tech firm Tsinghua Unigroup has prepped a $23B, or $21/share, bid to acquire U.S. DRAM/NAND flash giant Micron (NASDAQ:MU), the WSJ reports.
- The report has broken shortly after AH trading closed for the day. Odds are Micron rises sharply in premarket trading Tuesday morning. Shares closed today at $17.61.
- With Micron having started the year trading in the mid-30s - shares were still in the mid-20s a few weeks ago - there's a good chance management rejects the offer, which could prove to simply be an opening bid. If Micron agrees to a deal with Tsinghua, U.S. regulators are likely to closely scrutinize it.
- Of note: Micron NAND JV partner Intel (NASDAQ:INTC) has a 20% stake in a Tsinghua holding company that owns mobile chipmakers Spreadtrum and RDA Microelectronics, courtesy of a $1.5B investment made last year.
Wed, Jun. 17, 3:01 PM
- Intel (INTC +1.2%) has bought Recon Instruments, a Vancouver-based maker of heads-up displays for skiers, cyclists/joggers, and other fitness enthusiasts. Local site Techvibes reports the "word on the street" is that Intel paid "upwards of $175 million."
- If Recon's name sounds familiar, it might be because Intel's VC arm made a big investment in the company in 2013. The chip giant now says Recon gives it "a talented, experienced wearable computing team that will help us expand the market for head mounted display products and technologies."
- Historically, Intel's hardware efforts have been focused on creating reference designs and proof-of-concepts (see the MICA bracelet) meant to get OEMs to launch similar, Intel-powered, products. Nonetheless, Intel promises Recon will "continue selling, enhancing and marketing their products under the Recon brand," while also (in-line with the historical efforts) "[partnering] with Intel’s New Devices Group to develop smart device platforms for a broader set of customers and market segments."
- The purchase follows a 2014 partnership with eyewear giant Luxottica to create Intel-powered smartglasses, and reports the first commercial Google Glass model will contain an Intel processor.
Mon, Jun. 1, 8:49 AM
- As rumored over the weekend, Intel (NASDAQ:INTC) agrees to buy Altera (NASDAQ:ALTR) for $54 per share in cash, or $16.7B. The purchase is expected to be accretive to Intel's EPS and free cash flow in the first year after the close (in six-to-nine months).
- A webcast to discuss the deal is set for 10 ET.
- Source: Press Release
- INTC +0.65% and ALTR +4.8% (to $51.20) premarket
- Previously: WSJ: Intel to announce $54/share Altera deal on Monday (May 31)
Sun, May 31, 4:02 PM
- Following more than two months of drama, Intel (NASDAQ:INTC) is set to announce tomorrow it's buying FPGA vendor Altera (NASDAQ:ALTR) for the same $54/share price Bloomberg reported hearing in early April, per the WSJ.
- The reported price translates to a $16.2B valuation (per Yahoo/Google Finance), or $13.2B after factoring net cash/investments. It represents an 11% premium to Altera's Friday close, and a 56% premium to where it traded before the WSJ first reported of deal talks on March 27.
- Since the first reports, Altera has posted disappointing Q1 results/Q2 guidance, and Intel has announced a server CPU partnership with programmable ASIC maker eASIC (Pending:EASI) that has been seen as a hedge against Altera. But that alliance could prove complementary, as FPGAs remain the gold standard for rapid programmability and low design costs, while ASICs maintain a size, performance, and power edge.
- Will Xilinx (NASDAQ:XLNX) get acquired next? Reuters reported earlier this month Avago has shown interest in the Altera archrival. But that was before Avago struck a $37B deal to merge with Broadcom.
- Previously: Intel/Altera seen providing many synergies, sparking more M&A
Fri, May 29, 1:53 AM
- Intel (NASDAQ:INTC) is close to a deal to buy fellow chipmaker Altera (NASDAQ:ALTR) for about $15B, the NY Post reports, stating that a deal is "likely by the end of next week."
- Altera reportedly rejected an Intel $54/share bid just a few months ago and then broke off sales talks, but that was before Altera issued disappointing earnings.
- Intel also has the option to launch a hostile bid after June 1, when its standstill agreement with Altera expires.
- Intel-Altera timeline
Mon, May 18, 7:25 AM
Thu, Apr. 30, 4:32 PM
- Intel (NASDAQ:INTC) signed a standstill agreement with Altera (NASDAQ:ALTR) amid M&A talks, Reuters reports. However, the agreement is said to expire on June 1, after which Intel would be free to launch a hostile bid if it wishes. Sources state it's "unclear" whether Intel will make such a move (through a public tender offer) once the standstill expires.
- The news service adds Intel discussed a $58/share bid for Altera in February, but lowered its offer after signing an NDA and poring through Altera's books - Altera's Q1 results and Q2 guidance appear to explain Intel's thinking. Bloomberg previously reported of a $54/share offer.
- ALTR +5% AH to $43.78. Earlier this week, major Altera investor TIG Advisors demanded the FPGA maker resume Intel buyout talks.
- Prior Intel/Altera coverage
Mon, Apr. 13, 5:00 PM
- In what might be one of the most predictable acts of shareholder activism in recent memory, many large Altera (NASDAQ:ALTR) investors have sent letters to the company urging it to resume buyout talks with Intel (NASDAQ:INTC), sources tell Bloomberg. Cadian Capital (2.8% Altera stake) and TIG Advisors (1.5% stake) are said to be among the disgruntled parties.
- The letters followed reports Altera had rejected an Intel buyout offer in the low-to-mid $50s (Bloomberg reported $54/share). Altera closed at $34.58 the day before Intel buyout reports first broke, and at $43.86 today. They briefly tumbled on reports of Altera's rejection, but soon erased their losses as investors bet a deal would eventually occur.
- Altera +1.8% AH to $44.65. Intel's Q1 report arrives tomorrow afternoon; Altera's arrives on April 23.
Thu, Apr. 9, 11:32 AM
- After initially seeing double-digit losses in response to a CNBC report (later backed up by Bloomberg) stating Intel (NASDAQ:INTC) has broken off buyout talks due to price disagreements, Altera (ALTR +0.1%) is now near breakeven.
- With the FPGA vendor's shares still 22% below the $54/share offer price reported by Bloomberg, investors/traders are betting a deal will eventually happen.
- Altera is currently up 21% from where it traded before the WSJ reported of deal talks on March 27. Q1 results arrive on April 23.
Thu, Apr. 9, 9:52 AM
- CNBC's David Faber has reported Intel (NASDAQ:INTC) has ended talks to acquire FPGA vendor Altera due to a failure to agree on price. That has fueled speculation Intel will make a bid for Broadcom (NASDAQ:BRCM), which competes with Intel in several telecom/networking chip markets and complements the chip giant's offerings in many others.
- Also possibly helping Broadcom: Ladenburg Thalmann has launched coverage with a Buy rating and $51 target.
- With a current $26.3B market cap - a buyout price would likely have to be over $30B - Broadcom would be a big fish to swallow. Q1 results arrive on April 21.
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