Freescale Semiconductor Ltd
Why is “Internet of Everything” a future growth driver for Cisco?
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.
What’s the Downside if the AGL Resources Deal Breaks?
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.
Freescale–NXP merger: The material adverse change clause, part 1
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.
Why Did Marvell Technology’s Revenue Fall Again?
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.
Can the Western Digital-SanDisk Merger Get Antitrust Approval?
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.
Could the Lam Research-KLA-Tencor Merger Get Competitive?
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.
Freescale–NXP merger: The material adverse change clause, part 2
The material adverse change clause describes the way that NXP Semiconductors (NXPI) can back out of the Freescale–NXP merger.
Micron Boosts the Consolidation Wave in the Semiconductor Space
The SMAC revolution, combined with IoT and the growing popularity of connected devices, has contributed to consolidation in the semiconductor space.
Could the SanDisk-Western Digital Merger Get Competitive?
In the SanDisk-Western Digital merger, Western Digital is paying about 2.6x trailing-12-month revenues and 10.6x trailing-12-month EBITDA.
Consolidation in Semiconductor Industry Could Gain Momentum
The current wave of consolidation makes potential targets out of chip companies that serve the industrial, automotive, mobile, and storage spaces.
Freescale–NXP merger: The material adverse change clause, part 3
A war between China and Taiwan is not a material adverse change. An earthquake that takes out a Freescale manufacturing facility is.
The Freescale–NXP merger: A large deal in the semiconductor space
The key to the Freescale–NXP merger is the timing. The companies are guiding to a 2H15 close, likely in the fourth quarter.
AGL Resources: Could Southern Co Be Stopped by a Bidding War?
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.
The Freescale–NXP merger regulatory path to approval
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.
The Freescale–NXP Merger: Freescale at a glance
The Freescale–NXP merger is driven by complementary offerings. Freescale is active in the auto, consumer, networking, and industrial markets.
Regulatory Path for the Lam Research-KLA-Tencor Merger
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.
Why is the Freescale–NXP merger premium so low?
The companies were asked about the takeover premium and the background to the transaction on the conference call, but they refused to comment.
Freescale–NXP merger: Salient points of the deal
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 […]
Broadcom Rose on June 27 after Analyst Rating Upgrade
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 Recovery: Will the Dollar Index Play a Crucial Role?
Natural gas should be negatively correlated with the US Dollar Index. A stronger dollar implies more expensive natural gas for consumers in other currencies.
What Makes Renesas a Potential Acquisition Target?
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.
NXP-Freescale Merger Threatens Infineon and Renesas
Renesas and Infineon, which currently hold the top ranks in the automotive semiconductor space, will lose market share to the NXP-Freescale merged company.
Why Is Infineon Interested in Investing in Renesas?
German chipmaker Infineon Technologies is showing interest in Japanese automotive semiconductor company Renesas Electronics.
How Energy and Materials Foiled the Fidelity Blue Chip Growth Fund’s Returns
The Fidelity Blue Chip Growth Fund rose by 7.0% in October 2015 over the previous month. Information technology was the biggest positive contributor.
Will Arbitrageurs Set up the SanDisk-Western Digital Merger?
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.
Qorvo’s Shares Soared 23% after Its Fiscal 2Q16 Earnings Release
In fiscal 2Q16, Qorvo’s (QRVO) revenue almost doubled year-over-year to $708 million, beating the consensus estimate of $700 million.
Parsing the KLA-Tencor–Lam Research Merger MAE Clause, Part 1
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.
Evaluating NXP Semiconductors’ Share Plunge Post-3Q15 Earnings Release
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 SanDisk–Western Digital Merger: Basics of SanDisk
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.
Rationale for the SanDisk-Western Digital Merger
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.
Freescale’s Fiscal 3Q15 EPS Beat Analysts’ Estimates
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.
The KLA-Tencor–Lam Research Merger: Basics of Lam Research
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.
The KLA-Tencor–Lam Research Merger: Basics of KLA-Tencor
KLAC’s products are complementary with Lam Research’s (LRCX) products and are the driver for the KLA-Tencor–Lam Research merger.
Basics of the SanDisk-Western Digital Merger
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.
Is the KLA-Tencor–Lam Research Merger a Setup at These Levels?
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.
Rationale for the KLA-Tencor–Lam Research Merger
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.
Basics of the KLA-Tencor–Lam Research Merger
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.
The Lam Research-KLA-Tencor Merger—Semiconductor Consolidation
On Wednesday, October 21, Lam Research announced its merger with KLA-Tencor in yet another big deal in the semiconductor space.
Basics of the EMC-Dell Merger
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.
Dell Is Buying EMC in a Blockbuster Tech Deal
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.
How Did Marvell Technology Compare to Its Peers?
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.
Parsing the AGL-Southern Material Adverse Effect Clause: Part 3
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, an Electric Utility Holding Company
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.
Where Intel Fits in the New Semiconductor Value Chain
Huge investment is required at every stage of semiconductor development to make smaller-sized chips in a cost-effective manner without compromising on functionality.
Is the AGL Resources Deal with Southern Company Worth Your Time?
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 Purchase: Conditions Southern Company Must Meet
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: Natural Gas Is Its Core Business
AGL Resources (GAS) is an energy company that’s primarily involved in the distribution of natural gas. It launched two joint ventures last fall.
Why Southern Company Is Buying AGL Resources
By purchasing AGL Resources (GAS), Southern will get access to some important pipelines, especially some that come from the Marcellus Shale region.
Southern Company Buys AGL Resources—Secures Gas Infrastructure
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.
Precision Castparts 101: An Overview for Merger Arbitrage
Precision Castparts manufactures complex products for aerospace and power applications that supplies General Electric, United Technologies, and Rolls Royce.
Key Ratios: Comparing Skyworks with Its Close Competitors
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.
Will Antitrust Be an Issue in the Precision Castparts Transaction?
In the merger of Berkshire Hathaway and Precision Castparts, both companies will have to file under the Hart–Scott–Rodino Antitrust Improvements Act.
California Homebuilder Ryland: The Basics
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.
Be Ready for a Rough Ride If You Set Up the Broadcom-Avago Merger
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.
Altera Corporation: The Basics of a Complex Semiconductor Company
Altera (ALTR) designs and sells programmable logic devices, power system-on-chip devices, intellectual property cores, and proprietary development software.
Intel Leads Semiconductor Industry with 15% Market Share
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.
Avago Announces Acquisition of Broadcom Today, a $37-Billion Deal
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.