Micrel, IncorporatedNASDAQ
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  • May 7, 2015, 4:35 PM
    • Along with its FQ4 results, Microchip (NASDAQ:MCHP) announces it's buying analog/mixed-signal chipmaker Micrel (NASDAQ:MCRL) for $14/share, or $744M net of cash. Micrel shareholders can opt to be paid either in cash or stock.
    • The price represents a modest 4% premium to Micrel's Thursday close. Microchip notes the price is 30% above where Micrel traded before activist Starboard Value disclosed a 12% stake last August, thus fueling hopes Micrel will take part in the chip industry's consolidation wave.
    • The deal is expected to close in early calendar Q3. No word yet on expected post-merger cost synergies. Micrel's chips often go into hardware Microchip aims to sell microcontrollers for. Last year, Microchip bought Bluetooth chipmaker ISSC for $294M.
    • Microchip has also announced it's expanding its buyback authorization to 20M from the 2.5M that it previously had remaining. The company's FQ4 diluted share count was 220.9M.
    • FQ1 guidance is for revenue $547M-$564M and EPS of $0.69-$0.73, almost entirely below a consensus of $568.3M and $0.74. Many peers have also provided soft guidance.
    • Microchip is nearly unchanged AH.
    | May 7, 2015, 4:35 PM
  • Apr. 13, 2015, 9:49 AM
    • Micrel's (NASDAQ:MCRL) 2015 annual meeting has been pushed back from June 19 to August 4. The analog/mixed-signal chipmaker states the move will "allow the Board and the Company's management to further evaluate the Company's strategic alternatives."
    • Micrel announced a strategic review on Jan. 20 amid a chip industry consolidation wave that still isn't showing any signs of letting up.
    | Apr. 13, 2015, 9:49 AM
  • Jan. 20, 2015, 10:58 AM
    • Micrel's (NASDAQ:MCRL) board has "unanimously decided to undertake a comprehensive review of strategic alternatives to enhance value for shareholders."
    • A Transactions Committee composed of three directors has been formed, and Credit Suisse hired to advise.
    • Plenty of other chipmakers have been acquired over the last 15 months.
    | Jan. 20, 2015, 10:58 AM
  • 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.
    | Jun. 17, 2014, 6:58 PM | 3 Comments
  • Aug. 30, 2013, 4:54 PM
    • In an effort to "complement [its] high performance clock and timing products" as well as expand its MEMS capabilities, Micrel (MCRL) will acquire MEMS maker Discera.
    • The deal "gives MCRL the intellectual property and technical know-how to pursue not only MEMS-based timing devices but also other types of MEMS devices," CEO Ray Zinn says.
    • Terms of the deal were not disclosed but MCRL did say it expects the acquisition to be dilutive to earnings in FY13 and "neutral to slightly accretive in FY14." (PR)
    | Aug. 30, 2013, 4:54 PM
  • Mar. 15, 2012, 4:13 PM
    Analog/mixed-signal chipmaker Micrel (MCRL) is acquiring a controlling interest in PhaseLink, a developer of clock chips for telecom and storage applications, for an undisclosed sum. Micrel expects the deal to dilute its 2012 EPS by $0.02, but be accretive within 18 months. Shares are down slightly AH.
    | Mar. 15, 2012, 4:13 PM