A bidding war for Anadigics has developed between GaAs Labs and an unnamed suitor. Anadigics said Thursday that GaAs Labs had increased its offer, but its offer was immediately exceeded by the other company.
Anadigics said, as per agreement, GaAs Labs has two business days to match or outbid its rival.
In November, GaAs Labs proposed to buy Anadigics for $0.35 a share, or about $32 million total. Anadigics announced the offer simultaneously with its Q3 results, in which the company reported another loss, based on revenue that continued to decrease.
In early December, Anadigics received a rival bid of $0.48. Today it announced that GaAs Labs subsequently matched that offer, but GaAs Labs' new bid was almost immediately trumped, on December 22, by a $0.54/share offer from the other company.
GaAs Labs is attempting to build itself into a powerhouse in compound semiconductors -- specifically gallium nitride. GaN is already supplanting silicon in many applications, especially those in the power realm, but it also shows promise for some types of memory, and perhaps even in logic. (See Blows Against the Empire: Lidow's Radical GaN Logic.)
GaAs bought MACOM in 2009 and GaN chip specialist Nitronex in 2014. Anadigics has also become a notable supplier of GaN-based circuitry.
Guessing who the unnamed rival is would be pure speculation. That said, China has a well-funded program to expand its semiconductor capabilities, and Chinese companies have been increasingly active in M&A activity this year.
— Brian Santo, Senior Editor, Components, T&M, Light Reading