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Weekly News of 02nd of May

NYSE-owner ICE to buy Black Knight in $13.1 bln deal


New York Stock Exchange-parent Intercontinental Exchange  will acquire Black Knight in a deal valuing the mortgage-lending software and data analytics firm at $13.1 billion, reports Reuters.

ICE’s cash-and-stock offer of $85 per share is a premium of nearly 34% to Black Knight’s close on Tuesday. The deal’s enterprise value is about $16 billion. The companies said they expect the transaction to close in the first half of 2023.

The acquisition of Black Knight, which provides software, data and analytics to the real estate and housing finance markets, is the latest in a string of deals since 2016 by ICE to support its mortgage servicing business as it bets on a windfall from the automation of the home financing process.

ICE announced a deal to buy Ellie Mae, a cloud-based platform that supports all aspects of mortgage origination, for $11 billion in August 2020. That followed a $335 million deal for Simplifile in 2019, and the acquisition of MERS, in which ICE took a majority stake in 2016 and bought outright in 2018.

While ICE is better known for stock and futures exchanges, its mortgage technology division brought in $1.4 billion in 2021, accounting for around 20% of the Atlanta-based company’s consolidated revenue, less transaction-based expenses.


Chipmaker MaxLinear to buy Taiwan’s Silicon Motion for about $4 bln


Chipmaker MaxLinear will buy Taiwan-based Silicon Motion Technology for nearly $4 billion in a cash-and-stock deal, reports Reuters. It creates one of the largest fabless semiconductor suppliers in the world.

The combination will allow the merged entity to expand into enterprise, consumer and many other growth markets with more than $2 billion in combined revenue annually and total available market opportunity of $15 billion, the companies said.

According to media reports, Qualcomm rival MediaTek was also interested in buying Silicon Motion.

MaxLinear will pay $93.54 in cash and about 0.4 of its share for each Silicon Motion’s American depositary shares (ADS), representing a total consideration of $114.34 per ADS.

The offer is at a 41% premium to Silicon Motion’s Wednesday close of $81.2 and a 48% premium to its April 22 close, the last day of trading before news of a takeover interest was first reported.

MaxLinear will fund the deal with cash in hand and debt financing from Wells Fargo. The acquisition is expected to be immediately accretive to operating margins, earnings and cash flow levels.

The deal is likely to close in the first half of 2023, after which MaxLinear’s shareholders will own about 86% of the combined company that will have an enterprise valuation of $8 billion.


Semcorp to invest $916 million to make EV battery components in Ohio


Semcorp, a Shanghai-based producer of electric vehicle battery components, plans to invest $916 million in a manufacturing plant in Sidney, Ohio, reports Reuters.

The facility will make separator film for lithium-ion batteries. Semcorp, the trade name of Yunnan Energy New Material. It’s said it is the world’s largest maker of separator film, a key component in batteries.

The company said the Ohio plant will employ nearly 1,200 people.


Germany wants to attract chip makers with 14 bln euros state aid


Germany’s government wants to attract chip makers with 14 billion euros ($14.71 billion) in support, reports Reuters. According to the state government, the lack of semiconductors used in everything from smartphones to cars was a massive problem.

A global chip shortage and supply chain bottlenecks have created havoc for car makers, healthcare providers, telecoms operators and others.

In February, the European Commission set out plans to encourage chip manufacturing in the European Union due to a boom in demand, with proposed new legislation to ease state aid rules for chip factories.

In March, U.S. chipmaker Intel announced it had picked the German town of Magdeburg as the site for a huge new 17 billion euro chipmaking complex.