Qorvo to Acquire RF Producer GreenPeak to Boost Portfolio

Premier semiconductor manufacturer Qorvo, Inc. QRVO recently inked an agreement to acquire a privately held enterprise, GreenPeak Technologies for an undisclosed amount. The acquisition will enable Qorvo to expand its RF (radio frequency) solutions and systems-on-a-chip (SoCs) portfolio for the connected home and Internet of Things ("IoT") market.

Headquartered in the Netherlands, GreenPeak is a leader in RF communication technology for wireless connected home applications. The company offers innovative ultra-low power wireless data communication controller chips for smart home applications.

Qorvo is a leading provider of core technologies and RF solutions for mobile, infrastructure and aerospace/defense applications. The acquisition of GreenPeak will complement Qorvo's existing RF portfolio. The merger of these leading RF solution companies will enable Qorvo to provide highly innovative solutions to its customers, enabling it to increase its presence in the extensively growing IoT market.

Per a research by Gartner, Smart Home networking and IoT markets comprising 802.15.4, ZigBee and Bluetooth Low Energy ("BLE") technology are expected to grow to $2.3 billion by 2020. Other related markets which include retail, agriculture, automotive, lifestyle and commercial lighting are estimated to grow to $4.9 billion by 2020. Besides smart home networking, devices such as Heating, Ventilation and Air Conditioning (HVAC), energy, security, home health, and remote controls which use ultra-low power wireless data communication SoCs are also seeing a boost in demand.

On the closure of this deal, which is expected to happen by the end of the current quarter, GreenPeak will be part of Qorvo's Infrastructure and Defense Products (IDP) segment. The financial advisor to GreenPeak for this transaction was Wells Fargo & Company WFC.

Qorvo carries a Zacks Rank #3 (Hold). A couple of other better-ranked stocks include Parkervision Inc. PRKR and Himax Technologies, Inc. HIMX, both carrying a Zacks Rank #2 (Buy).

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