Microwave Journal

M/A-COM Acquisition Strengthens Cobham

June 4, 2008

Strategy Analytics, commenting on the recent acquisition of M/A-COM by Cobham, believes that the deal offers clear synergies with Cobham's current engagements in the US defense market, which will be further enhanced by gaining access to an established manufacturing base and a strong technology roadmap.

M/A-COM's A&D business unit will fit well with Cobham's current engagements in the US defense programs. This will be further helped by gaining access to an established manufacturing base comprising both GaAs and GaN technologies, as well as a strong roadmap for future technology development, as discussed in the recent Strategy Analytics report, "Cobham Expands US Defense Market Presence with M/A-COM Acquisition."

"While the original intentions of the Tyco Electronics management team may have been to gain maximum value for the M/A-COM business unit, Strategy Analytics believes the current economic crunch has allowed Cobham to pick up a bargain," noted Asif Anwar. "M/A-COM's A&D business unit has long standing relationships in the US defense market and is engaged on a broad range of platforms including the F-35 military strike fighter and the DDG-1000 US naval destroyers."

Commenting on Cobham's intention to divest the commercial business of M/A-COM, Asif Anwar added, "M/A-COM is a top ten GaAs device manufacturer with a diverse product portfolio which could be attractive to GaAs device manufacturers looking for ways to easily expand their standard product lines while maintaining a focus on existing high volume markets. In such a scenario, Cobham will be best positioned with buyers if the commercial unit is sold without the encumbrance of a manufacturing facility."