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Semiconductor M&A Activity For 2016 May Be Second To Only 2015

LSCC

There is no let up in merger and acquisitions within the semiconductor industry, as 2016 makes strides toward challenging records. In the current week alone, there are two M&A deals. The latest one is Lattice Semiconductor Corporation (NASDAQ: LSCC) acquisition by Canyon Bridge’s affiliate for $8.3 a share in cash, or $1.3 billion including debt.

After the completion of the transaction, Lattice will be an independent subsidiary of Canyon Bridge. However, the senior management team would continue to run the business from its existing headquarters.

Commenting on the developments, Lattice Semiconductor president and CEO Darin Billerbeck said, “We are pleased to announce the transaction today with Canyon Bridge, which will unlock tremendous value for shareholders. This transaction is the culmination of an extensive review process with our Board, financial and legal advisers, and it delivers certain and immediate cash value to shareholders while reducing our execution risk.”

Before this, there was Broadcom Ltd (NASDAQ: AVGO)’s acquisition of Brocade Communications Systems, Inc. (NASDAQ: BRCD) for $5.9 billion. Last year was a record one with about $103.8 billion in M&As in the industry.

The current week’s M&A in the semiconductor industry could mean that the current year could turn out to be the second biggest one. The M&A space have been witnessing some hectic activities in the last five years or so.

A Look Back

The following provides deal values from 2012:

2012: 12 deals worth about $9.5 billion. 2013: eight deals worth about $11.5 billion. 2014: 20 deals worth about $16.9 billion. 2015: 23 deals for about $103.8 billion. 2016, thus far: 18 deals for $55.3 billion. Including the latest two, there would be 20 deals worth about $62.5 billion.

At Last Check ...

  • Broadcom was up 1.18 percent at $174.60.
  • Brocade was down 0.16 percent at $12.30.
  • Lattice Semiconductor was up 18.92 percent at $7.57.


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