No company ever announces a merger/acquisition and tells its
shareholders that they expect to waste their money and produce no
long-term benefits from the transaction. But even after adjusting for
hope and optimism, I think the logic of the RF Micro Devices (RFMD) - TriQuint (TQNT)
merger holds up. Together, the two companies should be able to achieve
meaningful operating cost synergies while offering a comprehensive line
of RF products for the mobile market and emerging Internet of Things
market.
In terms of value, though, I think the market has the
transaction pretty well figured out. There is upside if the two
companies can quickly generate more than $125 million in cost synergies,
but $10 to $11 looks about right for RF Micro Devices today and
likewise $16.50 to $18 for TriQuint.
Find the full article here:
RF Micro Devices Near A Major Transformation
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