After failing to buy PMC-Sierra, Skyworks is eyeing Microsemi

According to one industry watcher, if you can’t beat them, buy them. The observation relates to the rumoured acquisition of Microsemi by Skyworks.
Both companies were competing to buy PMC-Sierra at the end of 2015. Bidding for PMC started at $2billion, but Microsemi prevailed, paying ‘approximately $2.5bn’ for the communications specialist.

Skyworks, which is predominantly focused on the wireless communications market, was formed in 2002 following a merger between Alpha Industries and Conexant’s wireless comms business. Since then, it has broadened its interests through acquisitions, including SiGe Semiconductor, the Canadian developer of integrated RF front end solutions, in 2011.

Microsemi is, in the main, complementary to Skyworks, with a broad range of technologies aimed at demanding applications in the military, aerospace and industrial sectors. Microsemi currently has a market capitalisation of more than $5bn.

Last year, acquisitions in the electronics sector exceeded $100bn and it looks like that figure might be matched in 2016, with SoftBanks's $24bn acquisition of ARM and Qualcomm's $47bn deal with NXP leading the way.