Mergers & Acquisitions

11 Articles

Mergers And Acquisitions: Analog And Linear

July 26, 2016 by 29 Comments

Analog Devices and Linear Technology have announced today they will combine forces to create a semiconductor company worth $30 Billion.

This news follows the very recent acquisition of ARM Holdings by Japan’s SoftBank, and the later mergers, purchases or acquisitions of On and Fairchild, Avago and Broadcom, NXP and Freescale, and Microchip and Atmel, Intel and Altera, and a few more we’re forgetting at the moment.

Both Analog and Linear address similar markets; Analog Devices is best known for amps, interface, and power management ICs. Linear, likewise, isn’t known for ‘fun’ devices, but without their products the ‘fun’ components wouldn’t work. Because the product lines are so complimentary, the resulting company will stand to save $150 Million annually after the deal closes.

Analog and Linear are only the latest in a long line of semiconductor mergers and acquisitions, but it will certainly not be the last. The entire industry is consolidating, and the only way to grow is by teaming up with other companies. This leads the question if there will eventually only be one gigantic semiconductor company in the future. You’ll get different answers to that question from different people. Hughes, Fairchild, Convair, Douglas, McDonnell Douglas, North American, Grumman, Northrop, Northrop Grumman, Bell, Cessna, Schweizer and Sikorsky would say yes. Lockheed Martin and Boeing would say no. It’s the same thing.

SoftBank Bought ARM

July 18, 2016 by 44 Comments

$32 billion USD doesn’t buy as much as it used to. Unless you convert it into British Pounds, battered by the UK’s decision to leave the European Union, and make an offer for ARM Holdings. In that case, it will buy you our favorite fabless chip-design company.

The company putting up 32 Really Big Ones is Japan’s SoftBank, a diversified technology conglomerate. SoftBank is most visible as a mobile phone operator in Japan, but their business strategy lately has been latching on to emerging technology and making very good investments. (With the notable exception of purchasing the US’s Sprint Telecom, which they say is turning around.) Recently, they’ve focused on wireless and IoT. And now, they’re going to buy ARM.

We suspect that this won’t mean much for ARM in the long term. SoftBank isn’t a semiconductor firm, they just want a piece of the action. With the Japanese economy relatively stagnant, a strong Yen and a weak Pound, ARM became a bargain. (SoftBank said in a press release that the Brexit didn’t affect their decision, and that they would have bought ARM anyway. Still, you can’t blame them for waiting until after the vote, and the fallout, to make the purchase.) It certainly won’t hurt SoftBank’s robotics, IoT, or AI strategies to have a leading processor design firm in their stable, but we predict business as usual for those of us way downstream in the ARM ecosystem.

Thanks [Jaromir] for the tip!

Premier Farnell Sold To Swiss Firm

June 15, 2016 by 34 Comments

According to this article in the Guardian, Premier Farnell, the electronics parts distributor who is also a UK manufacturer of the Raspberry Pi, is going to be sold to Dätwyler. Their share price immediately rose 50%, closing at just under the Swiss firm’s offer price.

Farnell itself had been on a binge, according to Wikipedia anyway, buying up electronics distributorships in Poland, India, and the US. In 2009, they bought Cadsoft, the makers of Eagle CAD software. Now they’re being sold to another distributor.

Bloomberg writes this up as being just more consolidation in an already consolidating market. What any of this will mean for the hacker on the street is anyone’s guess, but we’re putting our money on it amounting to nearly nothing. But still, now’s the time to stock up on your genuine UK-owned, made-in-UK Pis before they become Swiss-owned and made who knows where.

ON Semiconductor Acquires Fairchild

November 19, 2015 by 24 Comments

In the continuing process of semiconductor companies buying each other up, ON Semiconductor has acquired Fairchild Semiconductor for $2.4 Billion.

ON Semi and Fairchild’s deal is only the latest in a long line of mergers and acquisitions. We’ve recently seen Dialog’s buyout of Atmel, Avago’s purchase of Broadcom,  NXP and Freescale’s merger, and soon might see TI buy Maxim. We’re currently in the great time of acquisition, with nearly $100 Billion flowing from company to company in just a few months.

Companies have cash to spend and costs to cut. This latest deal is expected to save $150 Million in annual costs.

Fairchild has a long and storied history in the semiconductor industry, with the first integrated circuit produced in a Fairchild lab in Palo Alto. [Bob Widlar] made Fairchild his home until famously leaving for National Semiconductor in 1965. Somewhat ironically, Fairchild Semiconductor was bought by National Semiconductor in 1987.

ON Semiconductor’s history is not nearly as interesting, being spun off of Motorola’s semiconductor business in 1999. Although ON’s main line of business was discrete components, ON also has a catalog of quite a few power management ICs.

Unfortunately, because ON Semi bought Fairchild and not the other way around, we’re stuck with what is probably the worst logo in the entire semiconductor industry: drop-shadowed balls are so mid-90s!