Microchip bid for CSR, Edison view: “the deadline extension indicates a serious level of consideration regarding a potential combination. The combined company would offer a comprehensive package of system components matched by few competitors.”

Dan Scovel, analyst at Edison Investment Research said:

“The fact that both companies are agreeing to extend this deadline indicates a relatively serious level of consideration regarding a potential combination.  Deal pricing and disposition of legacy and underperforming assets in the CSR portfolio are complicating details that could easily be the cause of extended negotiations.

This is a very interesting potential combination:  it is clearly NOT an industry-consolidation play, but rather one of diversification and product line expansion and is pre-positioning the assets to better serve Internet of Things market opportunities with a more complete collection of system components.  The Internet of Things is all about a wide variety of highly diverse market offerings requiring highly customized electronics systems optimized for specific price-performance characteristics.

Microchip is an industry leading supplier of microcontrollers with analog,  memory, and a variety of wired-communication capabilities, and CSR’s wireless Bluetooth and CSRmesh will significantly enhance Microchip’s nascent wireless communication offerings.  The combined company would offer an extremely comprehensive package of system components matched by few competitors that would only lack in sensor and power assets–both of which would, arguably, be the most difficult to integrate into a system offering.”

Contact Information

Microchip Technology Inc.

2355 W. Chandler Blvd.
Chandler, AZ, 85224

tele: 480.792.7200
toll-free: 888.MCU.MCHP
fax: 480.792.7277

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