Cypress TrueTouch Mobile to be Sold to Parade Technologies - Analyst Blog
Parade Technologies and Cypress Semiconductor (CY) have signed a definitive agreement according to which Parade will buy Cypress's TrueTouch Mobile touchscreen business for $100 million cash.
Once the acquisition is complete, Parade will offer TrueTouch solutions to mobile clients and move to other consumer-oriented segments. Parade Technologies will serve smartphones, tablets, wearable technology, GPS systems, digital cameras, notebooks/PCs, monitors and some industrial segments.
Cypress, on the other hand, will continue to provide TrueTouch solutions to its home appliances and automotive clientele and CapSense button-replacement solutions to its mobile clients.
The acquisition will help Parade substantially increase its addressable market. Parade's foremost position in Embedded DisplayPort (eDP) timing controllers when combined with Cypress's state-of-the-art technology in capacitive touch-sensing, is expected to provide Parade with platform-level solutions with a comprehensive portfolio of products for its display clients. The acquisition is also expected to enhance the operational competence of the industry supply chain.
The companies said that the transaction, which is subject to customary closing conditions, is expected to close during the third quarter of 2015.
Cypressis a semiconductor company offering high-performance, mixed signal, programmable solutions. In the first quarter of 2015, Cypress incurred a loss of 53 cents per share, comparing unfavorably with the Zacks Consensus Estimate of earnings of 1 cent. However, revenues of $209.1 million were up 13.6% sequentially and 22.8% year over year.
Stocks worth considering in the industry include Synacor, Inc. SYNC, Stamps.com Inc STMP,PetMed Express, Inc. PETS and Orbitz Worldwide, Inc. OWW ). All of them carry a Zacks Rank #2 (Buy).
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