Techwell Acquired for Significant Premium

Published Apr 28, 2010 00:00 AM
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Analog CCTV component provider Techwell was acquired for a robust premium [link no longer available] in March 2010 by analog semiconductor manufacturer Intersil.

Prior to Intersil's offer, Techwell's stock was trading at approximately $12 per share. Intersil tendered a cash offer of $18.50 per share for a 50% premium. Indeed, the acquisition price was 300% Techwell's stock price from just 1 year prior. Moreover, the valuation of $370 Million is approximately 6x Techwell's yearly revenue - a fairly high ratio.

At the beginning of the recession, Techwell's video surveillance revenue dropped dramatically (over 30%) but started to recover at the end of 2009.