The LAN technology announces, completes 693 million dollar the privatization transaction

Absrtact: In the early hours of November 20, the Nasdaq-listed China chip design company announced technology to complete a 693 million dollar privatisation deal. At this time, the distance from the LAN technology in the Nasdaq listing is still less than 14 months. LAN started technology in the bulletin, said by Shanghai Pudong Branch

In the early hours of November 20, the Nasdaq-listed Chinese chip design company announced technology to complete a 693 million dollar privatisation deal. At this time, the distance from the LAN technology in the Nasdaq listing is still less than 14 months.

LAN-technology in the bulletin said, by the Shanghai Pudong Technology and technology investment Company and China Electronics (CEC) investment company established joint venture montage Marvell Global Holdings has completed the acquisition of the LAN technology, The deal is about $693 million trillion, equivalent to $22.6 per share.

LAN technology was founded in 2004, on September 27, 2013 in the Nasdaq listing, the issue price of 10 U.S. dollars, then, the LAN-tech shares rose, in early 2014 to reach 26.7 U.S. dollars. Last night, when stocks closed, the LAN-tech share price of 22.59 U.S. dollars.

"The National Integrated circuit development Promotion Platform" and the Integrated Circuit industry fund has landed, this is the first time by the state-owned enterprises and the central government buys the overseas listed company. Wenjun, chief analyst at Isuppli Semiconductor, told reporters that CEC and Pudonko had spent only 4 months raising funds and completing the approval process. "These experiences have important demonstration and reference significance to the success of Chinese capital in international mergers and acquisitions." ”

LAN-Tech founder Yang Chonghe is known as the chip design industry, "The first returnees," he was at the beginning of the venture is located in the "Digital Home" and "digital enterprise" two markets, the main digital TV, memory buffer chip two types of products, which are mainly used for high-performance servers.

These two products in the past two years to catch up with the wave of smart television, cloud computing. 2014 years ago, the three quarter, the LAN technology revenue for 35.6 million U.S. dollars, 40.4 million U.S. dollars, 46 million U.S. dollars, accumulated 122 million U.S. dollars, an increase of 61.6%. The first three quarter net profit was 7.8 million U.S. dollars, 7.1 million U.S. dollars, 10.2 million U.S. dollars, accumulated 25.1 million U.S. dollars, an increase of 49.4%.

"LAN Science and technology products are relatively single, but are very competitive." "The chip industry celebrities old told reporters," the domestic can provide sophisticated smart TV chip companies, currently only LAN-tech. The acquisition of LAN-technology, CEC can be in the field of intelligent television show their skill. In addition, Wenjun told reporters: "Memory buffer chip, the world only four companies can produce." and the volume of production, only the United States IDT, LAN Science and technology of the two companies. ”

CEC, which ranks third in China's Electronics and information industry, can provide powerful market resources for LAN-tech and accelerate the development of science and technology in LAN. Moreover, the acquisition of LAN-technology itself is the CEC layout information industry is a very important step in the localization.

Since 2014, CEC has been frequently laid out in IT industry. In May 2014, CEC Holdings Guizhou China Electric Zhenhua Information Industry Co., Ltd. ("Zhenhua Group") acquired the IT network equipment chip enterprise Suzhou Sheng KE Network Co., Ltd., at the same time, Zhenhua Group also adopted the "establishment of a joint venture to implement CPU chip capacity-building project" Bill.

August 2014, Zhenhua Group invested 128 million yuan, established Tianjin Flying Information Technology Co., Ltd. in Tianjin, the company will research and development, production, sales of high-performance computing general-purpose chips, high-end embedded chips, to provide a safe, controllable information solutions.

In addition, the industry sources said CEC will also acquire the largest enterprise-class IT equipment manufacturers H3C, CEC is currently with H3C's parent company HP negotiations. H3C first by Huawei, the United States 3COM Company was established, after the full acquisition of HP, product line covers network equipment, security, server, storage, one machine and other fields, customer coverage of government, finance, education, medical, transportation, energy and other industries.

Reporters on the "acquisition of H3C", "Chip industry overall layout" and other matters such as the advisory CEC, its propaganda department responded that "it is not suitable for publicity."

"For CEC, the biggest significance of LAN technology is the international team." "Wenjun thinks," The state-owned enterprise management system will become CEC in the chip field of constraints, Next, CEC may be around the LAN technology layout, rather than the integration of the LAN technology. "At present, the LAN's ownership structure of science and technology is management, CEC, Pudonko cast three-party shareholding, there is no single major shareholder." Wenjun that, "this is the three parties intentionally and for, at present is to maintain the LAN science and Technology team independence." ”

Old Yao told reporters: "CEC itself has it market resources, in the acquisition of IT equipment enterprises, chip enterprises, CEC is perfecting the entire domestic informatization of the ecological chain." ”

It should be noted that before the CEC acquisition of LAN technology, the Purple Light Group has acquired the exhibition, RDA, become the largest intelligent terminal chip design company. This time, CEC acquired LAN technology, gradually improve its "enterprise chip" layout, China's integrated circuit industry, the two major groups of strategic planning is becoming clearer.