Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: ACCOUNTING STANDARD :: VAT Audit :: empanelment :: cpt :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: form 3cd :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: VAT RATES :: articles on VAT and GST in India
 
 
« Mergers and Acquisitions »
 What is Triggering the Wave of Mergers & Acquisitions in the Indian Internet Space?
 Oil and gas mergers and acquisitions are finally making a comeback
  Mergers: Commission approves acquisition of St Jude Medical by Abbott Laboratories, subject to conditions
 Mergers and Acquisitions: What’s Happening in the OFS Industry?
 Mergers: Commission approves acquisition of St Jude Medical by Abbott Laboratories, subject to conditions
 Prediction: These 8 Companies Will Get Bought in 2017
 Third Quarter Results Show Continued Strength in Mergers and Acquisitions
 Mergers and Acquisitions Modelling 3 Day Course - 23.03.17 - Research and Markets
 Foiled cross-border mergers and acquisitions
 Mergers and Acquisitions: 15 Important Considerations for In-House Counsel
 U.S. mergers and acquisitions activity expected to remain steady in 2017: KPMG

Bankers See M&A Activity Rising
January, 27th 2010

Deal making in the semiconductor sector should accelerate this year after a dismal 2009, bankers said, helped by strong balance sheets and a need to patch strategic holes as tech markets converge.

After months in which only tiny acquisitions gained traction, larger deals are also ahead. Dave Creamer, head of Jefferies & Co.'s semiconductor unit, said venture capital and private company deals are likely in the current quarter, while deals for public companies could start hitting the tape in the second quarter.

"There is definitely a lot of activity in semis underway," he said.

Last year, mergers and acquisitions activity in the U.S. semiconductor sector fell to $3.2 billion from $11.2 billion in 2008, a 72% drop, according to Dealogic. Large deals fell apart over the last two years too, including several attempted hostile acquisitions.

Broadcom Corp. (BRCM) couldn't wrangle Emulex Corp. (ELX) last year. And in late 2008, Samsung Electronics Co. (005930.SE) failed in its bid for SanDisk Corp. (SNDK) while a joint acquisition attempt by Microchip Technology Inc. (MCHP) and ON Semiconductor Corp. (ONNN) for Atmel Corp. (ATML) stumbled.

Now that stock valuations have recovered from multi-year lows, sellers should be able to fetch prices that satisfy shareholders, bankers said. And buyers that have hoarded cash through the recession have ample reserves to target new areas with higher growth.

Broadcom paid roughly six times revenue in its $178 million acquisition of privately held Dune Networks in November, according to a person familiar with the matter--a multiple one banker called "substantial, and justifiable."

Deals between publicly traded companies have been scarce, making comparisons difficult. But Applied Materials Inc. (AMAT) made one of the latest public acquisitions of Semitool Inc., which it completed in December, paying a 31% premium for all outstanding shares of the company's stock.

JP Morgan analyst Chris Danely said companies such as Intel Corp. (INTC) and Analog Devices Inc. (ADI) appear positioned to make acquisitions.

"We believe Analog Devices is interested in expanding its power management product portfolio," he wrote. Monolithic Power Systems Inc. (MPWR), Intersil Corp. (ISIL) and National Semiconductor Corp. (NSM) "could all be strategically attractive."

Intel, he said, could grab suppliers in the embedded or system-on-chip markets, where it hopes to expand market share with its popular Atom chip.

An Intel spokesman said the embedded market "is obviously an important one" for the company, but declined to comment on the possibility of any acquisitions.

Analog Devices declined to comment.

Jefferies' Creamer said areas that should see activity include technology for smart phones, mobile television, technology infrastructure and companies working in the smart-grid space.

Technologies that connect different types of devices are expected to be a hot area for deal-making as chip makers vie for a bigger share of this high-growth market.

One of the big themes at the Consumer Electronics Show this year was the "connected home," which will let consumers link up all of their electronic devices to share movies and other content.

Another banker who asked not to be identified said shareholders of potential buyers appear less worried about dilution and employing cash, "as long as you can show you are entering a market where there is growth going forward."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions