Report
Brian Colello

Microchip Completes the Acquisition of Microsemi; Maintain $112 FVE as Shares Still Undervalued

On May 29, Microchip Technology announced that it completed the acquisition of Microsemi at the agreed-upon price of $68.78 per Microsemi share in an all-cash deal. We are encouraged that the deal closed with few, if any, hiccups and continue to anticipate that Microchip's management team has a good chance of generating better-than-expected synergies from the acquisition. We will maintain our $112 fair value estimate for wide-moat Microchip as we already incorporate the acquisition into our valu...
Underlying
Microchip Technology Incorporated

Microchip Technology develops, manufactures and sells semiconductor products. The company's product portfolio comprises general purpose and other eight-bit, 16-bit, 32-bit microcontrollers, 32-bit microprocessors, field-programmable gate array products, a range of linear, mixed-signal, power management, thermal management, discrete diodes, Metal Oxide Semiconductor Field Effect Transistors, radio frequency, timing, timing systems, safety, security, wired connectivity and wireless connectivity devices, serial Electrically Erasable Programmable Read Only Memory, Serial Flash memories, Parallel Flash memories, Serial Electrically Erasable Random Access Memory and serial Static Random Access Memory.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Brian Colello

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