M&A; Activity Around the Globe: SMTC, Gennum Corporation, Bosch, SPW, Elpida Memory, MU, Nanya Technology
Tuesday, January 24, 2022 10:02 AM



As the US stocks trade sharply lower on Tuesday, after talks to resolve Greece's debt-swap issues fall apart, several M&A activities took place around the world. Some notable M&A activities are discussed here.

Semtech Plans Acquisition of Gennum Corporation


Semtech Corporation (Nasdaq: SMTC), a leading semiconductor products maker, said in its filings that it has entered into a definitive agreement with Canada-based Gennum Corporation, under which it will acquire all of the outstanding shares of Gennum for $494 million. The acquisition is expected to expand Semtech’s portfolio by giving it the opportunity to expand in the metro, and will also be able to provide its customers with a variety of platforms to chose from for their high-speed voice, data and video transmission products. Gennum is headquartered in Ontario, Canada and has 450 employees, which includes about 240 engineers, with offices in 8 countries. Semtech management expect that the acquisition will be accretive in 2013 by 20 percent and in 2014 by 40 percent. The acquisition will be a financed by cash on hand and new bank financing. The company has already received $400 million financing from Jefferies Finance LLC. SMTC is up 3.90 percent to $27.94 a share.

Bosch to Acquire SPX’s Service Solutions Business


Germany’s Bosch said on Tuesday that its Automotive Aftermarket division has entered into a definitive agreement with SPX Corporation (NYSE: SPW), under which it will acquire Service Solutions business of SPX Corp. for a total of $1.15 billion in an all-cash transaction. The Service Solutions division of SPX develops, manufactures and sells tools, workshop equipment, and software for the global automotive aftermarket. The acquisition of the unit is expected to help Bosch by allowing it to expand its market presence in the diagnostics business, mainly in the North American market. The acquisition marks the largest acquisition in the history of the Automotive Aftermarket division of Bosch. The transaction is expected to close by the second half of 2012, after fulfilling the closing conditions and regulatory approvals. SPW is trading higher by 3.57 percent to $68.79 a share on Tuesday.

Elpida Considering Merger with Micron, Nanya: Reports


Japanese chipmaker, Elpida Memory Inc. is said to be in talks with Micron Technology Inc. (NYSE: MU) and Taiwan’s Nanya Technology Corp. for a possible merger, as the company faces an April deadline to repay debts, a Japanese newspaper Yomiuri reported on Tuesday. Elpida’s shares have tumbled in the last one month as investors worry about the debt repayment, which is due in late March and early April. However, after the reports on the merger talks the shares of the company rocketed on Tuesday. Representatives from Elpida refused to comment on the report. “The report boosts optimism that the company can come through this trouble. It can probably secure enough funds from banks and the government,” Mitsuo Shimizu, an equity analyst at Cosmo Securities Co. in Tokyo, told Bloomberg over the phone. MU is down 0.45 percent to $7.83 a share.

 

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