Yesterday, after the market close, chip maker Maxim Integrated Products (MXIM) announced it was acquiring Teridian Semiconductor, a privately-help company that specializes in chips used in energy measurement. The $315 million deal is all cash and is intended to bolster Maxim’s role in smart meter technology.
“Global Smart Grid investment is essential to use power plants and transmission networks more efficiently,” Maxim CEO Tunc Doluca said in a statement. “The addition of the Teridian team and product line to Maxim will significantly accelerate our penetration in this fast-developing market and will help us maintain our balanced business model.”
Thomas Weisel Partners analyst Tore Svanberg praised the deal in a note to clients this morning. “We believe jointly Teridian and Maxim could be a more competitive force in that [smart meter] market,” Svanberg wrote. “Together, they will be able to offer whole solutions that can more effectively compete against Texas Instruments (TXN), which also has been positioning itself as a one-stop shop for meter manufacturers.”
Shares of Maxim are up 15 cents, or 0.7%, this morning to $20.03.� Texas Instruments is up 11 cents, or 0.4%, to $25.80.
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