Boston, MA 04/07/2014 (wallstreetpr) – When the news of TriQuint Semiconductor (NASDAQ:TQNT) merger with RF Micro devices hit the markets, there was a surge in the prices of both the companies. TQNT, which has been a supplier for Apple has reported a growth of 60% post the news of its merger. With the ever increasing number of smartphones that use the technology supplied by the two companies, it is expected that they are not about to have any declining trends. Being the major supplier of the top notch smartphone companies, improved product mix and the rising demand for premium LTE products helped enhance the profitability surge.
Strong prospects
There is also the possibility of a significant increase in the market for its high value products with smartphone users expected to increase threefold by 2019. TriQuint Semiconductor (NASDAQ:TQNT)’s offerings of radio frequency chips for connecting cellphones to data along with voice network, and RF Micro Devices, Inc. (NASDAQ:RFMD)’s switch based products and the filters opted for broadband connectivity in mobiles. With a joint clientele of industry bigwigs such as Apple, Samsung and Blackberry, who hold the maximum share of the smartphone business in the world, there is a very lucrative and profitable opportunity for their new entity to begin with.
Benefits of the merger
The new company to be formed, NewCo is projected to have a accumulated revenue collection to a volume of greater than $2 billion and the savings to the line of $150, from the nullifying the redundant costs, are no laughing matter. Also on offer for the RF Micro Devices, Inc. (NASDAQ:RFMD)’s shareholders is the option of getting one share of NewCo, per one share held in RF Micro Devices. The tax-free deal is expected to be closed in the 2014 second half with additions to its accommodated profit for the first year after closure.
