Back to top

Image: Bigstock

InterDigital Completes Buyout of Technicolor's R&I Unit

Read MoreHide Full Article

InterDigital, Inc. (IDCC - Free Report) has completed the acquisition of the Research & Innovation (R&I) unit of Technicolor — a technology leader in the media and entertainment sector. Financial terms of the deal were not disclosed. Following the news, InterDigital’s share price slipped 0.02% in yesterday’s trading hours to eventually close at $65.48.

The strategic move will likely make the wireless R&D company a leader in both wireless and video research together with R&D-led portfolios for the mobile, consumer electronics, Internet of Things and related markets.

The buyout is believed to have created one of the largest long-term R&D and licensing companies in the world. Coupled with the previous acquisition of Technicolor’s patent portfolio and licensing teams, InterDigital is now well positioned to expand its offerings and value proposition to a broad range of customers.

Markedly, it brings InterDigital’s research team to about 340 engineers in eight R&D offices worldwide, and enhances its research capabilities beyond its core wireless base into video, augmented reality, immersive content, artificial intelligence and other key areas.

InterDigital’s commitment toward licensing its broad portfolio of technologies to wireless terminal equipment makers, which allows it to expand its core market capability, is laudable. Its global footprint, diversified product portfolio and ability to penetrate in different markets are impressive.

The company is optimizing its strength in core wireless licensing business. It has taken steps to drive shareholder value through the buyout of Technicolor licensing business. This has created significant new licensing opportunity in the video and consumer electronics markets.

InterDigital has long-term EPS growth expectation of 15%. It remains committed to its objective of expanding revenue sources while controlling expenses. The stock has lost 1.5% against the industry’s rise of 15.3% in the year-to-date period.



Currently, InterDigital has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Harris Corp. , Motorola Solutions, Inc. (MSI - Free Report) and Ubiquiti Networks, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Harris has long-term earnings growth expectation of 8%.

Motorola has long-term earnings growth expectation of 7.7%.

Ubiquiti has long-term earnings growth expectation of 19.8%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Motorola Solutions, Inc. (MSI) - free report >>

InterDigital, Inc. (IDCC) - free report >>

Published in