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 PMDiodes (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 | Comment!
Sep. 28, 2012, 9:32 AMDiodes (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 | Comment!
DIOD vs. ETF Alternatives
Diodes Inc manufactures and supplies application-specific standard products within logic and analog semiconductor markets, serving the consumer electronics, computing, communications, industrial and automotive markets.
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