In June, Datwyler bid £795 million then, in July, Avnet made an £868 million bid.
Last week, the Datwyler board said ‘With respect to the potential acquisition of Premier Farnell, in light of the higher offer submitted by Avnet on 28 July, Datwyler is currently considering its options and how to proceed and will make an announcement as appropriate in due course,’ says Datwyler.
‘Should the Board of Directors decide not to pursue the acquisition further, one-off transaction costs of around CHF 4 million to CHF 8 million would be incurred and included in EBIT,’ continues the company, ‘there would also be one-off costs of approximately CHF 35 million to CHF 40 million related to currency hedging and exchange rate losses, which would encumber the financial result.
In the event of a successful transaction, these one-off costs would be assigned to the purchase price.’
So now Datwyler will take the hit to its PL and leave Avnet to take over Premier Farnell.
ADI hopes the acquisition will boost its aerospace and defense capabilities in the area of secure radio communications, bolster its portfolio of system hardware and software-based cryptographic technologies, and add a cybersecurity software and services business that supports our ability to offer more comprehensive high-performance analog solutions across multiple market segments such as Internet of Things (IoT), industrial, automotive.
“With this acquisition, we have accelerated our ability to offer our customers trust ‘from the sensor to the cloud’ through next-generation cyber-physical security solutions,” says ADI’s Dick meaney, “the competencies and offerings of the CSS business are a great complement to our Internet of Things (IoT) solutions, as security increasingly becomes paramount to the success of IoT implementations.”
The CSS team will remain in its current locales of Tampa, Florida and West Lafayette, Indiana and form the core of ADI’s new Secure Technology Group (STG), to be led by John Walsh, former president of Sypris Electronics.
Five other companies with double digit Q2 gains were Samsung, Qualcomm, TSMC, Hynix and UMC.
Apple is quoted because it designs and uses processors even though it doesn’t sell any. IC Insights estimates that Apple’s processors had a “sales value” of $2.9 billion in 1H16, putting them in 14th place in the rankings.
If the three foundries (TSMC, GlobalFoundries, and UMC) were excluded, then HiSilicon ($1,710 million), ON Semiconductor ($1,695 million), and Analog Devices ($1,583 million) would have been ranked in the 18th, 19th, and 20th positions, respectively.
Collectively the top 20 increased sales by 7% in Q2. IC Insights writes:
“In total, the top-20 semiconductor companies’ sales increased by 7% in 2Q16/1Q16. Although, in total, the top-20 2Q16 semiconductor companies registered a 7% increase, there were seven companies that displayed a double-digit 2Q16/1Q16 jump in sales and only two that registered a decline (Intel and Renesas).”
“As expected, given the possible acquisitions and mergers that could/will occur over the next few years, the top-20 ranking is likely to undergo a significant amount of upheaval as the semiconductor industry continues along its path to maturity.”