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Micrel, Incorporated (MCRL)

  • Tue, Jan. 20, 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.
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  • 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.
  • 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)
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  • 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.
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Company Description
Micrel Inc designs, develops, manufactures and markets analog, power and mixed-signal integrated circuits. The Company also manufactures custom analog and mixed-signal circuits and provides wafer foundry services.