Shares of Quantenna Communications (NASDAQ: QTNA) surged 17.5% higher although of 2 p.m. EDT, owing ought a buyout offer from ON Semiconductor (NASDAQ: ON). at is paying $24.50 per fragment although the maker of high-performance Wi-Fi networking solutions, and Quantenna's stock is already trading within 2% of that all-cash offer.
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After shelling out $1.07 billion although Quantenna, at will bolster its portfolio of networking solutions with an innovative collection of everything from chip-level hardware ought Wi-Fi management software. The occupation is expected ought end at the second half of 2019, pending the mutual battery of Quantenna shareholder votes and regulatory approvals.
"The mixture of ON's expertise at highly effective energy management and broad sales and distribution reach, and Quantenna's industry chief Wi-Fi technologies and software expertise creates a formidable platform although addressing quick growing markets although low-power connectivity at industrial and automotive applications," said at Semiconductor CEO Keith Jackson at a prepared statement.
Quantenna's board of directors has unanimously accepted ON's offer, celebrating the occupation although a signal-booster although the company's ambitions and affair prospects. That recommendation makes plenty of sense, considering that at generates $5.9 billion of annual revenue compared ought Quantenna's $220 million.
"Quantenna will advantage from a world-class organization at our commitment ought providing the best purpose user experience although our customers," said Quantenna chairman and CEO Sam Heidari.
Several analyst firms instantly switched their bullish Quantenna ratings ought "hold," expecting the occupation ought simply end at about exactly the modern fragment prices. although the identical reason, I just closed my thumbs-up CAPScall at the stock.
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Anders Bylund has no location at any of the stocks mentioned. The Motley trick owns shares of Quantenna Communications. The Motley trick has a disclosure policy.