SMSC Acquires Conexant 284 Million

U.S. chip design firm Conexant Systems, Inc. and SMSC, a provider of intelligent mixed-signal connectivity solutions, issued a joint press release before the US stock market opening on the 10th, stating that the two parties formally signed a contract and SMSC will invest in acquisition of Conexant. Excluding equity in cash, total equity in cash plus equity amounted to approximately 284 million U.S. dollars (including the net debt of Conexant), and this transaction has been approved by the board of directors of both parties. According to the contract, Conexant shareholders will receive approximately $2.25 per share (including $1.125 in cash and SMSC shares), a premium of 19% compared to the closing price on the 7th.

Inadvertently recalling the history of Conexant, we can see that Conexant is a company with a long history and is out of the door with Rockwell.

In 1967, Rockville began production of semiconductor calculators. In 1983, Brooktree Corporation, which operates the TV set-top box business, was established. In 1984, Comstream, which operates the broadband chip business, was founded. In 1996, Rockwell Semiconductor acquired Brooktree. In 1997, Rockwell Semiconductor acquired Comstream. In 1999, Rockwell Semiconductor departed from Rockwell International and became Conexant. In 2002, he left Jazz Semiconductor and withdrew from the chip production business. In 2003, Conexant acquired Globespan Virata, a provider of DSL and Wi-Fi solutions. In 2004, acquired H. 264 technology provider Amphion Semiconductor. Acquired Amphion Semiconductor, a provider of high-definition television technology.

Conexant was once the leader of the DSL chip industry and formed a three-way situation with TI and ST. ADI, Centillium, Infineon and Broadcom could not shake their positions. However, after the emergence of the cluster effect of the network chip competitor, Ikanos acquired the ADSL service of ADI and Centillium, and TI also sold the business to Infineon, and Infineon spun off the wired broadband service to Lantiq as a whole. With lower and lower profitability of DSL business, Conexant also sold its DSL business to Ikanos.

In fact, several of Conexant’s mergers and acquisitions or sales are not ideal, resulting in this situation, including the purchase of Sigmatel part of technology from Freescale, exit Homeplug AV and set-top box business, and ultimately chose the home entertainment business. Including video, video, embedded data solutions, video surveillance applications and analog, mixed-signal products.

The SMSC recently made major acquisitions, including USB 3.0 vendor core micro, IP provider Tallika, sensor company Canesta, audio company Kleer and Wireless Audio IP B. V. , to create a complete home entertainment product line.

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