September 30, Beijing time, according to foreign media reports, qualcomm in grace wisdom pu semiconductor (hereinafter referred to as the "grace wisdom pu"), the transaction value could be more than $30 billion, it will be the concentration of rapid increase of the semiconductor industry's latest acquisitions.
Sources revealed that the two sides may be the next 2 to 3 months for a deal. Qualcomm may not only considering acquisitions wisdom of pu and some people said qualcomm is exploring other possible deal.
By Thursday noon local time, grace wisdom pu market value of about $28 billion. According to the typical acquisition premium calculation, high price can be more than $30 billion, making a deal to become one of the largest mergers and acquisitions this year.
Qualcomm has a market value of $93 billion.
Faced with the problem of slower growth and increasing competition, the chip company quite keen on m&a deals, the purpose is to expand scale, reduce the cost. Semiconductor field acquisitions at a record high in 2015, Intel, anwar high is the big deal. Mr Pu paid $11.8 billion for freescale.
Market research firm Dealogic, chip industry mergers and acquisitions amount more than $75 billion this year, the busiest industry makes the technology industry mergers and acquisitions. Softbank, in two months ago, and the ARM reach $32 billion merger deal. Promote the growth of mergers and acquisitions the semiconductor field in China. China will invest $24 billion increase and the development of semiconductor industry.
Grace wisdom pu acquisition will bring change to qualcomm. Through the supply of intelligent mobile phone chips qualcomm has quickly become a chip giant, but in recent years it faces some challenges, including smartphone growth.
Qualcomm has a unique business model. Although the design and sales of chip is the most important source of revenue, but more than half of the profits from the mobile phone manufacturer license wireless technology patents. This business model to help qualcomm won most of the time in the history of its profits. At the end of June, qualcomm has $31 billion in cash reserves, and almost all overseas, this is it buy er pu such overseas company of one of the motivations.
Grace wisdom pu acquisition will allow qualcomm chip products from dozens to hundreds of, involving industry expands to be outside of mobile devices, many industries. Qualcomm will thus become the first big car chip suppliers.
In view of the two companies are strong complementarity, mergers and acquisitions can significantly boost profitability, the industry has been rumoured qualcomm will acquire wisdom of pu. Investment firm Sanford c. Bernstein analyst in investment report published on Thursday local time mentioned qualcomm acquisition probability of pu. Investment report to refer to qualcomm, said "many investors hope the company to complete more strategic trade". Size of pu makes it to qualcomm attractive, in addition, grace wisdom pu business scope covers the automotive, security and mobile payment, etc.
Sanford c. Bernstein analyst said, regardless of the cost reduction, acquire wisdom pu can make high profit increased 30%. But they also point out that the deal will face a "considerable integration/execution risk".
If grace and wisdom pu acquisition agreement, it will be a qualcomm's largest ever deal. The deal will increase dramatically high number of employees, in September 2015, qualcomm number about 33000 employees, intellectual pu approximately 45000 people.
Grace chip of pu is not used for PCS and smartphones, and used in automobile, identity card or bus card. In 2015, grace wisdom PuYing accept for $6.1 billion, profits of $1.5 billion. Largest car freescale makes grace wisdom pu chip suppliers. Grace wisdom pu or a major NFC chip development company.
