Needham & Company Downgrades Entropic (ENTR) to Hold on Takeover Deal

Needham & Company downgraded Entropic (NASDAQ: ENTR) from Buy to Hold after the company agreed to be acquired by MaxLinear.

Analyst Rajvindra Gill commented, "MaxLinear last night announced a definitive agreement to acquire Entropic for ~$3.01 per share, or an ~11% premium to yesterday's close. We ultimately believe this was a necessary decision for Entropic as the company likely would have had difficulty operating as a standalone business given increasing threats from Broadcom, Intel and other large players. This announcement represents the third deal to start the year (LSCC/SIMG & INTC/Lantiq), a trend that we saw pick up in 2014 and that we expect to continue into 2015. We believe the deal price represents a fair value for Entropic and we do not expect other suitors to emerge. Consequently, we downgrade our rating to Hold."

For an analyst ratings summary and ratings history on Entropic click here. For more ratings news on Entropic click here.

Shares of Entropic closed at $2.70 yesterday.

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