Topeka Capital Comments on NXP Semiconductors (NXPI) Plans to Acquire Quintic

Topeka Capital maintained a Buy rating on NXP Semiconductors NV (NASDAQ: NXPI) with a price target of $80. Earlier NXP Semiconductors announced that it has entered into a definitive agreement with Quintic to acquire assets and IP related to its Wearable and Bluetooth Low Energy (BTLE) IC business.

"Terms were not disclosed, but we believe this transaction matches recent competitor moves and we expect the Company to become increasingly aggressive in filling key product gaps as needed to compete, with low-power WiFi and/or CAT0/CAT1 LTE being potential future additions if appropriate. Also, this acquisition will help NXPI more effectively compete with existing connectivity competitors, including Broadcom, Silicon Labs, Cypress, Atmel, Skyworks, Intel, Qualcomm (acquired CSR in October 2014) and Microchip (acquired Taiwan-based ISSC in May 2014)," said analyst Suji De Silva.

"Specifically, acquired BTLE: 1) rounds out a portfolio that already includes NFC and Zigbee, 2) complements NXPI’s existing low-power microcontroller/security products and 3) enables the Company to target embedded/Internet of Things applications across key segments such as mobile transactions, wearables, smart home and automotive. Furthermore, Quintic has established customer relations in the China IoT ecosystem, and will further NXPI’s position in this key growth market and geography," added the analyst.

For an analyst ratings summary and ratings history on NXP Semiconductors NV click here. For more ratings news on NXP Semiconductors NV click here.

Shares of NXP Semiconductors NV closed at $74.85 yesterday.

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