Freescale Semiconductor Ltd

The US-based (SPY) Broadcom (AVGO) has a market cap of $57.2 billion. It rose by 4.3% to close at $149.77 per share on June 28, 2016.

Natural gas should be negatively correlated with the US Dollar Index. A stronger dollar implies more expensive natural gas for consumers in other currencies.

While Renesas has set aside $2.4 billion for acquisitions and is willing to borrow, Innovation Network is looking to sell its 69.2% stake in the company.

Renesas and Infineon, which currently hold the top ranks in the automotive semiconductor space, will lose market share to the NXP-Freescale merged company.

German chipmaker Infineon Technologies is showing interest in Japanese automotive semiconductor company Renesas Electronics.

The Fidelity Blue Chip Growth Fund rose by 7.0% in October 2015 over the previous month. Information technology was the biggest positive contributor.

In fiscal 2Q16, Qorvo’s (QRVO) revenue almost doubled year-over-year to $708 million, beating the consensus estimate of $700 million.

Diversifying revenue streams and achieving scale is a big driver of the SanDisk–Western Digital merger. They offers similar products, and the combination will help them negotiate better with customers.

NXP Semiconductors, which supplies chips to Apple, reported its 3Q15 earnings on October 29. The company’s YoY revenues were flat at $1.52 billion.

The KLA-Tencor–Lam Research merger includes a disproportionate effect clause, which means the carve-outs may, in fact, be a MAE if they disproportionately affect KLA-Tencor.

Both KLA-Tencor and Lam Research serve Samsung and Taiwan Semiconductor. Improving service to big customers is a major driver for the KLA-Tencor–Lam Research merger.

KLAC’s products are complementary with Lam Research’s (LRCX) products and are the driver for the KLA-Tencor–Lam Research merger.

On a YoY (year-over-year) basis, Freescale’s fiscal 3Q15 revenue fell 7.7% to $1.12 billion. It failed to meet analysts’ estimates of $1.15 billion.

If you set up the spread with the SanDisk-Western Digital merger assuming you are getting $85.10 plus 0.0176 shares of WDC, you are expecting a $9 spread.

In the SanDisk-Western Digital merger, Western Digital is paying about 2.6x trailing-12-month revenues and 10.6x trailing-12-month EBITDA.

While the Western Digital-SanDisk merger brings together the third and eighth players, respectively, in storage (which usually isn’t problematic from an antitrust standpoint), regulators can get very granular when they define submarkets.

With the SanDisk-Western Digital merger, the companies expect to generate annual run-rate synergies of $500 million per year within 18 months of closing.

The equity value of the SanDisk-Western Digital merger is about $19 billion using the five-day volume-weighted average price of Western Digital before the deal was announced.

In the KLA-Tencor–Lam Research merger, Lam Research (LRCX) doesn’t have to agree to any divestitures or behavioral restrictions that materially affect the deal, but it does have a $290 million reverse termination fee.

In the Lam Research-KLA-Tencor merger, Lam Research is paying about 3.9x trailing-12-month revenues and 14.8x trailing-12-month EBITDA.

In the press release announcing the Lam Research-KLA-Tencor merger, the companies mention they will serve approximately 42% of the wafer fabrication equipment market immediately upon closing.

The KLA-Tencor–Lam Research merger is expected to lead to $250 million in annualized cost synergies within the first 18–24 months after closing.

The equity value of the KLA-Tencor–Lam Research merger is about $10.6 billion using the closing price of Lam Research on October 20, the day before the deal was announced.

On Wednesday, October 21, Lam Research announced its merger with KLA-Tencor in yet another big deal in the semiconductor space.

Dell is buying EMC (EMC) for a combination of cash and stock. The total transaction value of the EMC-Dell merger is close to $67 billion if you include cash and assumed debt. Shareholders will receive $24.05 in cash and 0.111 shares of newly-issued VMWare (VMW) tracking stock.

After being pushed by major shareholder Elliott Management to either spin off its holding of VMware (VMW) or sell itself, EMC delivered and negotiated a sale to Dell, which went private in 2013.

Marvell Technology was outperformed by its peers based on the gross profit margin and PBV ratio. ETFs outperformed it based on the price movement and PBV ratio.

Marvell Technology (MRVL) has a market cap of $4.58 billion. Its YTD performance is decreasing due to its revenue falling 15% and 1.78% in 1Q16 and 2Q16.

The MAE clause lays out the conditions under which Southern Company (SO) can back out of its deal with AGL Resources (AGL). For example, an unusually warm winter or cool summer that depresses demand is not an MAE.

The Southern Company (SO) is a utility holding company that holds all the outstanding stock of Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power Company.

With the merger between AGL Resources (GAS) and Southern Company (SO), you’re getting about an 8.8% annualized yield. That’s probably a reflection of the turmoil in the equity markets.

AGL Resources (GAS) could sue Southern Company and demand specific performance. In other words, GAS could have a judge force SO to do the deal.

There have been several precedents similar to the AGL Resources deal. In this transaction, Southern Company is paying about 2.7x trailing 12-month revenues and 10x trailing 12-month EBITDA.

If a bidder happens to come in and top the Southern Company bid, AGL Resources will owe Southern Company a breakup fee of $201 million.

AGL Resources (GAS) is an energy company that’s primarily involved in the distribution of natural gas. It launched two joint ventures last fall.

By purchasing AGL Resources (GAS), Southern will get access to some important pipelines, especially some that come from the Marcellus Shale region.

Southern is buying AGL Resources for $66 in cash per share. This is a 38% premium to AGL’s closing price on Friday, August 21.

Huge investment is required at every stage of semiconductor development to make smaller-sized chips in a cost-effective manner without compromising on functionality.

The current wave of consolidation makes potential targets out of chip companies that serve the industrial, automotive, mobile, and storage spaces.

Precision Castparts manufactures complex products for aerospace and power applications that supplies General Electric, United Technologies, and Rolls Royce.

The current ratio measures whether the firm is in a position to pay their obligation or not. The higher the ratio, the better. Skyworks has the highest ratio of 5.70.

In the merger of Berkshire Hathaway and Precision Castparts, both companies will have to file under the Hart–Scott–Rodino Antitrust Improvements Act.

The SMAC revolution, combined with IoT and the growing popularity of connected devices, has contributed to consolidation in the semiconductor space.

Ryland targets the entry-level, move-up, and second move-up buyer. Its prices range from $160,000 to more than $650,000, with 2014’s selling prices averaging $330,000.

Altera (ALTR) designs and sells programmable logic devices, power system-on-chip devices, intellectual property cores, and proprietary development software.

In the Broadcom-Avago merger, you’re getting about an 8.9% annualized yield. That’s probably a reasonable return in a low interest–rate environment and given the risks of the transaction.

Despite semiconductor companies combining to become bigger, Intel continues to lead this market with a 15.4% share in the worldwide semiconductor market in 2014.

In a May 28 press release, Avago Technologies said it will acquire Broadcom for $37 billion. Avago will gain a broad portfolio of chips that Broadcom develops.

The companies were asked about the takeover premium and the background to the transaction on the conference call, but they refused to comment.

Basics of the transaction The Freescale–NXP merger transaction is a cash and stock transaction, which means Freescale shareholders will participate in the upside by holding stock in the merged entity. The equity value of the transaction is roughly $11.8 billion and includes about $4.9 billion in net debt. Terms of the transaction Freescale Semiconductor (FSL) shareholders […]

The companies expect to have a second antitrust-related request, and there is always the risk of an in-depth regulatory review by the European Union.

A war between China and Taiwan is not a material adverse change. An earthquake that takes out a Freescale manufacturing facility is.

The material adverse change clause describes the way that NXP Semiconductors (NXPI) can back out of the Freescale–NXP merger.

Pretty much anything that has a material adverse effect on the company will be considered a material adverse change, but there are exceptions to that rule.

The Freescale–NXP merger is driven by complementary offerings. Freescale is active in the auto, consumer, networking, and industrial markets.

The key to the Freescale–NXP merger is the timing. The companies are guiding to a 2H15 close, likely in the fourth quarter.

Cisco CEO John Chambers believes the Internet of Everything (IoE) might be a $19 trillion opportunity. Cities globally have the potential to claim $1.9 trillion in value from IoE over the next decade, Cisco’s study stated.