Quantcast

Analog (ADI) Buys Symeo, Boosts Radar Technology Offerings


Shutterstock photo

Leading semiconductor company Analog Devices, Inc. ADI acquired a privately held company, Symeo GmbH, for an undisclosed amount.

Based in Munich, Germany, Symeo GmbH develops and manufactures Radio Detection And Ranging (RADAR) hardware and software, used in automotive and industrial applications. The company's RF and sensor technology enables real-time position detection, distance measurement and telemetry.

Following the acquisition, the Symeo team will join ADI's Autonomous Transportation and Safety (ATS) business unit.

However, the stock has underperformed the industry it belongs to on a 12-month basis. The company's shares have gained 15.4% compared with the industry 's growth of 24.9%.

What's Retaining Analog Devices' Interest?

Analog found the deal appealing because Symeo's signal processing algorithms offer high precision RADAR solutions. These solutions enable system integrators and original equipment manufacturers to work with great precision in rough industrial environments. The deal provides Analog's customers a RADAR platform with improvements in angular accuracy and resolution.

Also, the acquisition will expand the company's share in the autonomous automotive segment. RADAR and cameras are sensor technologies that today's ADAS systems are increasingly using to provide advanced safety features like forward collision warning, pedestrian detection, blind spot detection and autonomous driving mode.

In the last reported first-quarter fiscal 2018, the Industrial segment accounted for 49% of total revenues, which soared 87.4% year over year and 4% sequentially to $743.6 million. Also, Automotive accounted for 16.6% of total revenues and jumped 76.4% from the year-ago quarter and 5.1% from the previous quarter to $252.2 million.

The deal will help the company gain a greater share in both the growing automotive and industrial markets.

Our Take

We see this acquisition as part of Analog Devices' ongoing investments in products for the industrial, automotive and aerospace markets.

Management is making continuous collaborations with innovative brands to expand its RADAR offerings. Last year, the company collaborated with Renesas Electronics Corporation on a system-level 77/79-GHz RADAR sensor. The new sensor was designed especially for applications in the automotive space that are safer and more connected.

We believe, the development of new technology along with a stronger foothold in Europe and China should benefit the company. We expect the company to leverage its already strong market position to penetrate deeper into these growing markets.

Analog Devices, Inc. Price and Consensus

Analog Devices, Inc. Price and Consensus | Analog Devices, Inc. Quote

Zacks Rank & Key Picks

Analog Devices has a Zacks Rank #3 (Hold). A few better-ranked stocks in the technology sector are PetMed Express PETS , Teradyne TER and Brady Corporation BRC . While PetMed and Teradyne sport a Zacks Rank #1 (Strong Buy), Brady Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Long-term earnings per share growth rate for PetMed, Teradyne and Brady Corporation is projected to be 10%, 12% and 7.5%, respectively.

Zacks Top 10 Stocks for 2018

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?

Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don't miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2018 today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PetMed Express, Inc. (PETS): Free Stock Analysis Report

Brady Corporation (BRC): Free Stock Analysis Report

Analog Devices, Inc. (ADI): Free Stock Analysis Report

Teradyne, Inc. (TER): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: PETS , BRC , ADI , TER


More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research








Research Brokers before you trade

Want to trade FX?