Commenting on Cobham’s divestment of M/A-COM Technology Solutions (M/A-COM Tech) to John Ocampo, the Strategy Analytics GaAs team concludes that the transaction is in line with Strategy Analytics expectations. This sale will ensure continuity for M/A-COM Tech, with a focus on streamlining operational capabilities and strategic targeting of end markets to maximize profitability.
Cobham’s acquisition of the M/A-COM unit from Tyco in 2008 was prefaced with the intent to sell off the commercial business unit, while retaining the aerospace and defense capabilities. Strategy Analytics highlighted at the time that it did not expect a prospective buyer to pay more than $100 M for M/A-COM’s commercial business. On March 31, 2009, Cobham announced that it had sold M/A-COM Tech to John Ocampo for a total consideration of up to $90 M.
“The relatively short history of John Ocampo’s private equity and venture capital firm would normally raise red flags,” noted Asif Anwar at Strategy Analytics. “However, Strategy Analytics believes that the prior expertise and focus of the personnel at Gaas Labs exemplified with the previous commercial success of Sirenza, will give M/A-COM Tech the breathing space required to get through a difficult 2009, before focusing on growth opportunities over 2010-2012 and beyond.”
Anwar concluded, “M/A-COM Tech still faces a number of challenges moving forwards and we believe the priority for the company should be to maintain and indeed accelerate efforts in the development of product and technology roadmaps, while proactively promoting the M/A-COM Tech brand.”