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2015 Mergers, Acquisitions & Change in the Global Electronics Industry

Recent big deals that are changing the face of electronics globally include the final blow to what once was the US telecom infrastructure unit of AT&T—Lucent Technologies—Alcatel-Lucent and now Nokia. I have personally lived this journey when I was Global Account Manager/Apps engineer for Burr-Brown and then TI for AT&T on through to Alcatel-Lucent from 1990 to 2010.

Then there is the impending transformation of Ericsson into a software company with huge layoffs all in Sweden by the end of June 2015 to the tune of 2,200 people being affected there in R&D and supply divisions. This may impact the large Power supply module group of Ericsson. Is there an acquisition in the air here too?

There is also the NXP acquisition/merger of Freescale which in turn spun another announcement with the sale of the NXP RF group to Chinese state-owned investment company Jianguang Asset Management Co. to help fund the acquisition/merger of Freescale and NXP. This needed to be done to avoid regulatory issues since the combined RF groups of NXP and Freescale would control somewhere in the area of 75% or more of the RF Power amplifier business in the world. The two units will operate as competitors until the Freescale-NXP deal closes later in 2015. The Freescale RF unit is the stronger of the two and will remain with the new combined companies as part of the merger.

One of the most positive mergers in my mind was Infineon and International Rectifier (IR) earlier this year. I feel very good about this company going forward. Both companies complement each other outstandingly in their distributional strengths, in their competitive products, and in their leading technological and innovative excellence. There is just an air of positivity about this company.

We also now have recent news the Intel will acquire Altera for $17B.

In my industry of electronics media—Arrow Electronics bought the United Technical Publishing division of Hearst Business Media which includes 16 engineering web sites, e-newsletters, inventory access tools and databases.

Whew! I'm sweating and dizzy just trying to get my head around the implications of all of this when the dust finally settles.

To read the rest of this article, visit EBN sister site EDN.

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1 comment on “2015 Mergers, Acquisitions & Change in the Global Electronics Industry

  1. apek
    June 4, 2015

    The Mergers and Acquisitions are very bad from a Macroeconomic perspective and ONLY the M&As between companies with complimentary portfolio cannot hurt economy as much as those with similar portfolio. The results will be observed by October 2015 on US economy.

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