NEW YORK (TheStreet) -- TriQuint Semiconductor (TQNT) was up 19.39% to $11.02 on Monday morning after RF Micro Devices (RFMD) announced that it would acquire the company for $1.6 billion in stock in a deal that could better position the new company in selling its chips to mobile device makers.
TriQuint shareholders will receive 1.675 shares of the new merged company for each share they own and RF Micro shareholders will receive one share, the two companies said in a joint statement. The companies expect the all-stock deal to create a company with combined revenue of more than $2 billion, and the two entities anticipate saving at least $150 million in costs from the merger.
RF Micro expects the deal to close in the second half of 2014.
"I believe this is an industry shaping event," said TriQuint CEO Ralph Quinsey in the companies' joint statement. "Through this combination of RFMD and TriQuint we form a diversified market leader with a highly compatible combination of products and technologies and a world class team focused on innovation and superior financial results. The alignment of culture between the two companies and the well matched products, capabilities and technologies will create compelling new opportunities."
TheStreet Ratings team rates TRIQUINT SEMICONDUCTOR INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRIQUINT SEMICONDUCTOR INC (TQNT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."