The Biggest Tech Merger This Year
Analog Devices has finalized a megamerger with Maxim Integrated. These companies are tying the knot on a 46-billion-dollar deal to help them chase down Texas Instruments in the semiconductor market. These are not cheap chips!
We told you about Uber’s Postmates acquisition on Invstr Crunch last week, and Warren Buffett’s epic and unexpected natural gas merger. This is the first in tech, so an important trustmark for markets as we’re seeing executives regain confidence, and companies recommit to future plans.
It’s a real investment approach to target stocks that are likely to be acquisition targets, a part of another companies’ future plans, and with latent value to be realized through a blue-chip giant bid.
The time is now. I mean, imagine how long Analog Devices was planning a bid for Maxim.
It didn’t thunk this up last night. It’s had this in the works for months in secret, waiting for the world to normalize somewhat. We could be about to see an avalanche of pent up M&A activity.
The top tips for investors are to look for little companies that have synergies with larger ones, valuable assets to catch the eye. There are tons of stocks with consolidation going on around them; pharma; mall operators; telecoms; radio and tele etc.
The returns are handsome as acquirers have to bid big on their chosen targets, far above current stock prices. The gains hit you overnight as deals are made official, and we bring you the good news when we report about them on the Invstr Crunch the very next morn.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.