M/A-Com Technology Solutions Holdings, Inc.
), a leading supplier of analog semiconductor solutions, announced
that its subsidiary, Mindspeed Technologies, Inc., has successfully
completed the sale of its CPE communication processor division to
Freescale Semiconductor, Ltd.
). The terms of the deal were kept under wraps.
The divestment includes a series of multicore, ARM-based embedded
processors and related software. While the Comcerto 100, 1000 and
2000 product ranges of multicore embedded processors formed a part
of the deal, M/A-Com retained the related Comcerto VoIP processor
business as a long-term investment.
The transaction will augment Freescale's footing in multicore
processors, thereby broadening the company's extensive product
portfolio and presenting renewed revenue growth opportunities. The
pact will enable Freescale to advance its domain into gateways and
network-attached storage, at a time of technological breakthroughs
in the Internet of Things, cloud technology and home automation and
From M/A-Com's viewpoint, the transaction furthers its strategy of
streamlining its operations in order to enhance focus on its core
M/A-Com had acquired Mindspeed Technologies last November; seeking
to leverage the latter's high-growth, high-margin HPA (high
performance analog) division as well as its cash-generating VoIP
business. Further, Mindspeed's silicon germanium-based capabilities
provided M/A-Com with the expertise to develop new applications and
additional system content in its core RF and microwave
Mindspeed's integration into M/A-Com's operations is expected to
generate significant financial synergies as it leverages the
former's established sales channel in Asia Pacific, thus expanding
its global footprint.
Part of M/A-Com's integration strategy was to divest or restructure
underperforming businesses, specifically Mindspeed's wireless and
communications processor units. M/A-Com completed the sale of the
wireless infrastructure assets to
) in Feb 2014.
The strategic divesture of the communications processor units is
also in alignment with M/A-Com's strategy to focus on its core
competencies, including the high performance analog, RF, microwave
and millimeter wave markets.
M/A-Com, a leading player in the semiconductor industry, provides
analog semiconductor solutions for use in wireless and wireline
applications across the RF, microwave and millimeter wave spectrum.
M/A-Com seems poised to become a worldwide leader in HPA solutions
for high speed networking and enterprise applications following the
integration of Mindspeed.
M/A-Com presently sports a Zacks Rank #3 (Hold). A better-ranked
stock in the industry that look promising is
Montage Technology Group Ltd.
), holding a Zacks Rank #1 (Strong Buy).
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