Thursday, June 19, 2014

Seeking Alpha: RF Micro Devices Near A Major Transformation

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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