Shares of Quantenna Communications (NASDAQ: QTNA) surged 17.5% higher although of 2 p.m. EDT, owing ought a buyout present from ON Semiconductor (NASDAQ: ON). above is paying $24.50 per part 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, above will bolster its portfolio of networking solutions with an innovative collection of everything from chip-level hardware ought Wi-Fi management software. The bargain is expected ought finish at the second half of 2019, pending the commonplace 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 speedy growing markets although low-power connectivity at industrial and automotive applications," said above Semiconductor CEO Keith Jackson at a prepared statement.
Quantenna's board of directors has unanimously accepted ON's offer, celebrating the bargain although a signal-booster although the company's ambitions and affair prospects. That recommendation makes plenty of sense, considering that above 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 goal user sustain although our customers," said Quantenna chairman and CEO Sam Heidari.
Several analyst firms instantly switched their bullish Quantenna ratings ought "hold," expecting the bargain ought simply finish at about exactly the contemporary part prices. although the identical reason, I neutral closed my thumbs-up CAPScall above the stock.
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Anders Bylund has no attitude at any of the stocks mentioned. The Motley trick owns shares of Quantenna Communications. The Motley trick has a disclosure policy.
