Tue, Oct. 6, 12:57 PM
- Skyworks (NASDAQ:SWKS) has tumbled towards $75 after announcing it's buying storage and telecom IC vendor PMC-Sierra (NASDAQ:PMCS) for $2B in cash on hand. (PR)
- Fellow RF chipmaker Avago (AVGO -6.7%), which (thanks to the LSI acquisition) competes against PMC-Sierra in the storage controller market, is also off, as is merger partner Broadcom (BRCM -3.2%), which competes against PMC to an extent in the telecom IC and network processor markets. RF peer Qorvo (QRVO -3.3%) is also getting hit. The Nasdaq is down 1.2%.
- Possibly hurting the group: Skyworks has used the PMC deal to announce it expects FQ4 (calendar Q3) revenue of $880M and EPS of $1.52. That's slightly above prior guidance of $875M and $1.51 and a consensus of $876M and $1.51, but expectations have been high following a long string of beat-and-raise quarters.
- The PMC acquisition expands Skyworks' reach to a slew of non-RF chip markets and enterprise/telecom infrastructure end-markets. It's expected to yield $75M in cost synergies within 12 months of closing (expected in 1H16), and subsequently boost Skyworks' annual EPS by $0.75. Assuming that target is hit, Skyworks is paying 14x forward EPS.
- Update (1:04PM ET): BofA/Merrill is defending Skyworks and Avago, arguing forward P/Es of less than 10 make shares very cheap.
- Update 2 (5:01PM ET): The group staged a comeback in afternoon trading. Skyworks closed down 1.4%, Avago 3.4%, Qorvo 1.1%, and Broadcom 1.6%. The Nasdaq closed down 0.7%.
Tue, Oct. 6, 1:51 AM
- Skyworks Solutions (NASDAQ:SWKS) has agreed to buy PMC-Sierra (NASDAQ:PMCS) for $2B in cash to expand its portfolio, customer base and end market applications.
- PMC shareholders will get $10.50 per share, representing a 37% premium to the stock's closing price of $7.69 on Monday.
- Semiconductor dealmaking has already reached more than $80B in 2015, surpassing every full year on record except 2000, when M&A in the sector hit $115.5B.
- PMCS +33.8% premarket
- Previously: PMC-Sierra +7.8%; company reportedly exploring sale (Oct. 01 2015)
Wed, May 27, 3:00 PM
- Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
- A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
- Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
- Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Jun. 25, 2014, 6:22 PM
- Black Sand Technologies, based out of Austin, was founded in '05 and has raised $28.2M in funding over its history.
- Notably, the product page on Black Sand's site only shows 3G amplifiers, and the most recent PR on its news page is from 2012. All signs suggest Qualcomm (QCOM) is buying the company to strengthen its power amplifier IP and/or engineering talent, as it encroaches on the turf of established vendors such as Skyworks (SWKS), TriQuint (TQNT), RF Micro (RFMD), and Avago (AVGO) with system-level solutions.
- Qualcomm, estimated to have 64% of the 2013 baseband processor market, made a dramatic entry into the amplifier market last year by announcing an RF front end solution (amplifiers included) that promised superior 3G/4G multi-band support and (via technologies such as envelope tracking) power efficiency. Skyworks, TriQuint, and RF Micro all tumbled following the announcement.
Feb. 24, 2014, 9:21 AM
- Skyworks (SWKS) is up 3.2% premarket, Qualcomm (QCOM) is up 1%, and Anadigics (ANAD) is up 3.7% following news RF component vendors TriQuint and RF Micro are merging. The merging companies themselves are up sharply.
- RF Micro/TriQuint, which comes on the heels of Avago/LSI, appears to be fueling hopes of additional consolidation in the RF component space. There might also be expectations rivals will be able to take share, as common customers such as Apple and Samsung try to stay diversified.
- Though Qualcomm's chip unit is best known for its baseband and app processors, it also has a large and growing RF component business, one Qualcomm hopes to expand via its innovative/ambitious RF front end platform.
Nov. 5, 2012, 1:47 PMRF Micro Devices (RFMD +0.6%) is spending $47.5M in cash to acquire Amalfi Semiconductor, a developer of RF/mixed-signal chips for low-end smartphones. Amalfi specializes in RF CMOS chips, which can be cheaper than traditional gallium arsenide parts. The purchase comes at a time when low-end Android sales to emerging markets are heavily responsible for smartphone growth. Rival Skyworks noted on last week's earnings call it expects the Chinese smartphone market to be a big near-term growth driver. | Nov. 5, 2012, 1:47 PM | 1 Comment
Nov. 30, 2011, 10:05 AMWireless chipmakers Advanced Analogic (AATI +32.5%) and Skyworks (SWKS +10.3%) surge after announcing a revised merger agreement in which the latter will acquire the former for $5.80/share in cash. Though the price is below the $6.13/share agreed to in May, investors had feared the deal would collapse entirely after Skyworks filed notices of breach (I, II) against Advanced Analogic. | Nov. 30, 2011, 10:05 AM | Comment!
Sep. 23, 2011, 4:06 PMAdvanced Analogic (AATI +2.7%) gains after the chipmaker files a petition for an arbitration ruling requiring Skyworks (SWKS) to go through with its planned acquisition of the company. Skyworks has issued formal notices of breach to Advanced Analogic, and the resulting crash in the latter's shares suggests investors don't expect the deal to occur. | Sep. 23, 2011, 4:06 PM | Comment!
Sep. 19, 2011, 11:18 AMAdvanced Analogic (AATI -14.6%), which fell 10 days ago after would-be acquirer Skyworks (SWKS -2.9%) filed a formal notice of breach, drops again after Skyworks discloses its belief Advanced Analogic has conducted business in an unusual manner, and states the latter opposes a plan by the former to delay a merger vote until the end of Q4. | Sep. 19, 2011, 11:18 AM | Comment!
Sep. 9, 2011, 1:58 PMAdvanced Analogic (AATI -29.2%), which announced a merger agreement with Skyworks (SWKS -2.9%) in May, is plunging after Skyworks discloses it's filed a formal notice of breach (page 12) regarding the agreement, accusing Advanced Analogic of failing to disclose requested business information. | Sep. 9, 2011, 1:58 PM | Comment!
May 27, 2011, 10:56 AMAdvanced Analogic Technologies (AATI) soars 54.2% following yesterday's news that Skyworks Solutions (SWKS -5.70%) agreed to buy the company for $6.13 a share, or roughly $262M in cash and stock. Skyworks says it expects AATI's power management semiconductor products to give an immediate boost to FY11 earnings. | May 27, 2011, 10:56 AM | 1 Comment
May 26, 2011, 5:27 PM
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