Violet Technology and the exhibition Communications recently announced that the former 1.78 billion U.S. dollar price acquisition of the communications

Abstract: Violet light Technology and the exhibition Communication announced recently, the two sides reached a final merger agreement, the former 1.78 billion U.S. dollar price acquisition of communications. In this respect, the people said that all the company notice, can not disclose more information. But South reporters from

Violet Technology and the communication of the exhibition recently announced that the two sides reached a final merger agreement, the former 1.78 billion U.S. dollar price acquisition exhibition communications.

In this respect, the people said that all the company notice, can not disclose more information. However, the South reporters from the close to the people in the exhibition learned that the introduction of the Tsinghua Violet as an investor, the purpose of privatization after the success of the domestic listing, to obtain greater development. This claim has not been officially acknowledged, but from its current position in the IC industry, there are traces to follow. The competitor Qualcomm is 20 times times the size of the exhibition, and MediaTek is 10 times times as much.

Tsinghua Violet will not intervene in management

The exhibition is a Nasdaq-listed IC company dedicated to the development of mobile chip platforms for smartphones, functional handsets and other consumer electronics products, with an annual revenue of around $720 million in 2012. For the acquisition, Tsinghua Violet Group chairman and CEO Zhao Wei said: "We believe that the exhibition communications and Tsinghua Violet will be complementary, at home and abroad to produce a huge synergy." Li Li, Chairman and CEO of the exhibition, said, "The acquisition of Tsinghua Violet will provide a huge return for the company's shareholders, and the communications business will continue to develop in the future." ”

The company's independence after the acquisition is not mentioned in the bulletin. However, those close to the company told reporters that the acquisition is mainly equity investment, will not participate in management. In this regard, the exhibition does not give a positive or negative response.

Privatization originated from foreign capital status quo

There is a view that the privatization of a general intention is the exhibition in the Nasdaq delisting, to seek the future in the shares listed. This kind of speculation stems from the chip design concept shares in the A-share market is very popular, before the exhibition in the U.S. capital market has been bland not fire, p/E has long been 10 times times below, the total market value is only about 1 billion U.S. dollars.

"China's concept stocks in the U.S. market has been a low degree of concern, which the concept of internet stocks because the ' story ' more, relatively better." Such IC companies such as the exhibition, even if the business is sound, there is not much topic. Izumo Consulting analyst Huang said that most of the purpose of privatization in order to expand the development, the exhibition should also be.

Those close to the show said that U.S. investors and institutions had the largest stake in the equity structure of the listed companies, and they valued profits more. But the reality of capital markets has made it impossible for us shareholders to see a higher level of earnings in the near future, so the takeover offer from Tsinghua could be accepted.

Proposed domestic IPO

At present, the main business in the domestic TD-SCDMA industry in the low-end mobile phone level, the scale is limited. South all reporters learned that the market for more broad WCDMA field has achieved some research results, and close to mass production, will be to the market, and MediaTek, Qualcomm's products form a positive competition.

Also because of this, the exhibition needs more money to promote a number of product lines. Huang also believes that if the ultimate goal of the company's privatization is in the domestic market, by the domestic IC industry development tide and 4G licensing opportunities, then the acquisition is completed after the action. Only at present the domestic IPO has not yet opened the gate, it is expected that the relevant action will be the fastest to be seen.