MAXLINEAR, INC.

(MXL)
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Delayed Nasdaq  -  04:00 2022-07-01 pm EDT
31.62 USD   -6.95%
06/28MaxLinear Says Waiting Period for Silicon Motion Acquisition Has Expired
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06/28MAXLINEAR : Announces Expiration of Hart-Scott-Rodino Waiting Period for Proposed Acquisition of Silicon Motion - Form 8-K
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06/28MAXLINEAR INC : Other Events, Financial Statements and Exhibits (form 8-K)
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Chipmaker MaxLinear to buy Taiwan's Silicon Motion for about $4 bln

05/05/2022 | 07:57am EDT

May 5 (Reuters) - Chipmaker MaxLinear Inc said on Thursday it will buy Taiwan-based Silicon Motion Technology Corp for nearly $4 billion in a cash-and-stock deal, creating one of the largest fabless semiconductor suppliers in the world.

The combination will allow the merged entity to expand into enterprise, consumer and many other growth markets with more than $2 billion in combined revenue annually and total available market opportunity of $15 billion, the companies said.

U.S.-listed shares of Silicon Motion, which makes NAND flash controllers, rose 19.4% in early trade to a record high, while MaxLinear's stock fell about 17%.

According to media reports, Qualcomm Inc rival MediaTek Inc was also interested in buying Silicon Motion, which Bloomberg News https://www.bloomberg.com/news/articles/2022-04-24/silicon-motion-is-said-to-explore-sale-amid-takeover-interest reported in April was working with advisors and holding talks with potential suitors amid takeover interest.

MaxLinear will pay $93.54 in cash and about 0.4 of its share for each Silicon Motion's American depositary shares (ADS), representing a total consideration of $114.34 per ADS.

The offer is at a 41% premium to Silicon Motion's Wednesday close of $81.2 and a 48% premium to its April 22 close, the last day of trading before news of a takeover interest was first reported.

MaxLinear will fund the deal with cash in hand and debt financing from Wells Fargo. The acquisition is expected to be immediately accretive to operating margins, earnings and cash flow levels, the companies said.

The deal is likely to close in the first half of 2023, after which MaxLinear's shareholders will own about 86% of the combined company that will have an enterprise valuation of $8 billion.

BMO Capital Markets Corp acted as financial advisor to MaxLinear and Goldman Sachs (Asia) LLC to Silicon Motion on the deal.

(Reporting by Chavi Mehta, Akash Sriram and Sohini Podder in Bengaluru; Editing by Sriraj Kalluvila, Shounak Dasgupta and Shinjini Ganguli)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
MAXLINEAR, INC. -6.95% 31.62 Delayed Quote.-58.06%
MEDIATEK INC. -0.16% 611 End-of-day quote.-48.66%
QUALCOMM, INC. -3.30% 123.53 Delayed Quote.-32.45%
SILICON MOTION TECHNOLOGY CORPORATION -2.09% 81.95 Delayed Quote.-13.76%
SK HYNIX INC. 1.83% 89100 End-of-day quote.-31.98%
All news about MAXLINEAR, INC.
06/28MaxLinear Says Waiting Period for Silicon Motion Acquisition Has Expired
MT
06/28MAXLINEAR : Announces Expiration of Hart-Scott-Rodino Waiting Period for Proposed Acquisit..
PU
06/28MAXLINEAR INC : Other Events, Financial Statements and Exhibits (form 8-K)
AQ
06/28MaxLinear Announces Expiration of Hart-Scott-Rodino Waiting Period for Proposed Acquisi..
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06/28Silicon Motion Announces Expiration of Hart-Scott-Rodino Waiting Period for MaxLinear's..
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06/27MaxLinear Wideband Modem to Enable Backhaul Networks that Accelerate 5G Deployments    
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06/27MaxLinear, Inc. Announces the Next-Generation MODEM Development within its MxL852xx Pro..
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06/22MaxLinear Teams with Qorvo to Enable High-Efficiency Power Amplifiers for Massive MIMO ..
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06/22MaxLinear, Inc. Teams with Qorvo to Enable High-Efficiency Power Amplifiers for Massive..
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06/21MAXLINEAR INC : Entry into a Material Definitive Agreement, Financial Statements and Exhib..
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Financials (USD)
Sales 2022 1 113 M - -
Net income 2022 164 M - -
Net cash 2022 42,4 M - -
P/E ratio 2022 15,5x
Yield 2022 -
Capitalization 2 446 M 2 446 M -
EV / Sales 2022 2,16x
EV / Sales 2023 1,77x
Nbr of Employees 1 503
Free-Float 92,3%
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Mean consensus BUY
Number of Analysts 11
Last Close Price 31,62 $
Average target price 61,60 $
Spread / Average Target 94,8%
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Managers and Directors
Kishore Venkata Seendripu Chairman, President & Chief Executive Officer
Steven G. Litchfield Chief Financial & Corporate Strategy Officer
Curtis C. Ling Chief Technical Officer
Kelly William Jones Vice President-Worldwide Operations
Thomas E. Pardun Lead Independent Director
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