Skyworks Acquires SiGe Semi

Skyworks Solutions, Inc. (SWKS - Analyst Report) recently closed its previously announced acquisition of SiGe Semiconductor, Inc. Skyworks paid $210 million in cash. Additionally, the company agreed to pay $65 million on achievement of certain milestones.

Headquartered in Andover, Massachusetts, SiGe Semiconductor is a provider of radio frequency (RF) front-end solutions facilitating wireless multimedia across a wide range of applications.

The acquisition is expected to be immediately accretive to the bottom-line excluding any non-recurring acquisition related charges and amortization of acquired intangibles.

With the help of SiGe’s innovative short range, silicon-based products, Skyworks will expand its wireless networking product portfolio. The acquisition is also expected to strengthen Skyworks’ addressable content opportunity for smart phones, tablets, gaming consoles, notebook PCs and home automation systems.

Earlier, management reiterated its outlook for above market growth, excluding its recently announced acquisitions. 

In April 2011, Skyworks guided that it expects to report revenues of approximately $345 million in the June quarter. Excluding one-time charges, Skyworks expects to report earnings of 46 cents in the current quarter.

In the long-run, management expects to approach a $1.5 billion revenue run rate with $2.00 in annualized earnings per share. Skyworks expects growth to be driven by its broad customer base, diversification into new markets and increasing share gains.

The outlook provided by management excludes the recently announced acquisitions.

Skyworks, which competes with TriQuint Semiconductor, Inc. (TQNT - Analyst Report), is capitalizing on proliferating demand for connection through smart phones, tablets and home automation systems. The company also consolidates its shares across the mobile Internet spectrum, ranging from net books and data cards tosmartphones, and even entry level handsets.

Moreover, Skyworks will gain from the rising tide of increasing RF content associated with the 3G and 4G Platforms.

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