It seems many companies today are trying to get some good acquisition deals to increase market share. Due to the economic climate, the time is right (Buy low). For example, the internet companies today are being valued with a "net present value of a TOO HIGH future cash flow". But of course, the valuation is to the extreme for an internet business. Product companies don't have this luxury to get an extremely high valuation, so any acquisition is always a plus.
On their conference call today, the company was not shy about admitting that every acquisition is realigned and resources are pared to avoid duplication. Zarlink has a list of its own acquisitions so in the end it will be interesting to see just what kind of company Microsemi becomes. Both the military/defense and medical electronics markets that Microsemi is serving require hi-reliability parts which both Zarlink and Microsemi excel in.
What does Microsemi want? This company keeps on acquiring companies in very short time. It may be tough to merge the people together and make the new company become more productive (or at least the same productive).
Microsemi just keeps acquiring companies for their defense and medical market offerings. Zarlink should fit that plan. The public letter that laments Zarlink's refusal Microsemi's next moves shows the perseverance with which the company is pursuing acquisitions:" Microsemi has a strong track record of growth through strategic acquisitions and a disciplined post-merger integration process allowing for minimal disruption in operations. Over the past 5 years, our highly experienced team has completed 14 acquisitions for total transaction consideration of more than $1.1 billion."
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