QUALCOMM Incorporated (QCOM) Signs Committed Financing Agreements To Fund Proposed Broadcom (AVGO) Acquisition- General Dynamics (GD)

0
30

QUALCOMM Incorporated (NASDAQ:QCOM) trade at $65.39 by decreased -0.41% in most recent trading session with share volume of 135061. Broadcom Limited (AVGO) released that it has signed committed financing agreements to fund its proposed acquisition of Qualcomm Incorporated (QCOM). A group of 12 financial institutions have agreed to provide up to $100 billion of committed credit facilities, including a $5 billion revolving credit facility and bridge financing, and investment funds affiliated with Silver Lake, KKR and CVC have agreed to provide $6 billion of convertible note financing to Broadcom to fund the transaction and post-closing working capital needs, including restructuring activities, at the combined companies.

Broadcom said the company has sufficient committed financing to fully fund the $60 per share cash component of its $82 per share offer to acquire all of the outstanding shares of Qualcomm. The financial institutions that will provide the credit facilities and bridge financing for the transaction are BofA Merrill Lynch, Citigroup, affiliates of Deutsche Bank AG, J.P. Morgan, Mizuho, MUFG, SMBC, Wells Fargo, Scotiabank, BMO Capital Markets, RBC Capital Markets and Morgan Stanley.

The share is moved forward to its percent change from 52-week low of 33.67% and hanging back from its percent change from 52-week high of -5.61%. Shares price moved down from its 50 days moving average with -0.44% and remote positively from 200 days moving average with 12.55%.

VIAVI Solutions (NASDAQ:VIAV) released that a collaboration with China Mobile Communications Corporation (CMCC) to introduce 5G service in China by the end of 2019. VIAVI is a preferred vendor of China Mobile, supporting their specific technologies and aggressive roadmap with advanced test solutions. VIAVI will provide test and measurement hardware and software for China Mobile and several equipment manufacturers to support development of Slicing Packet Network (SPN) with FlexE interface, the technology the carrier is positioning for 5G transport.

Based on extensive analysis of 5G transport network requirements, CMCC has determined that Slicing Packet Network (SPN) is an optimal technology to support next-generation architecture, bandwidth, traffic model, network slicing, latency and time synchronization. Flexible Ethernet or FlexE is used in conjunction with SPN to create smaller Ethernet channels from a larger one, or vice versa, to guarantee quality of service (QoS) and isolation between slices at the transport layer. CMCC has requested that the ITU undertake standardization of SPN. VIAVI is committing to support CMCC by delivering an SPN test platform, establishing a common foundation for network equipment manufacturers, chip developers and transceiver vendors to validate products based on this technology.

In January 2018, Madam Yang Zhiqiang, Deputy General Manager of China Mobile Research Institute (CMRI) welcomed Oleg Khaykin, President and Chief Executive Officer, and Tom Fawcett, Vice President and General Manager, Lab & Production Business Unit, VIAVI Solutions, to her offices for strategic meetings on 5G planning. The CMRI is a technical organization within the CMCC group and is responsible for new technology research, standardization, and qualification of infrastructure equipment, including testing protocols.

“VIAVI has been honored to collaborate with China Mobile on analyzing 5G network scenarios and proposing technology strategy,” said Khaykin. “In order to realize China Mobile’s vision of introducing 5G service by the end of 2019, principal technologies including SPN for transport must be standardized by the ITU-T. We have advanced our test technology to meet this objective, and our solutions are ready to support the China Mobile ecosystem of partners to deliver interoperable network infrastructure.”

Shares of General Dynamics Corporation (NYSE:GD) held volume of 45359 shares as compare to its average volume of 1490.75 shares. General Dynamics (NYSE:GD) along with CSRA (NYSE: CSRA) released that they have entered into a definitive agreement under which General Dynamics will acquire all outstanding shares of CSRA for $40.75 in cash. The transaction is valued at $9.6 billion, including the assumption of $2.8 billion in CSRA debt.

“The acquisition of CSRA represents a significant strategic step in expanding the capabilities and customer base of GDIT,” said PhebeNovakovic, chairman and chief executive officer of General Dynamics. “CSRA’s management team has created an outstanding provider of innovative, next-generation IT solutions with industry-leading margins. We see substantial opportunities to provide cost-effective IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies. The combination enables GDIT to grow revenue and profits at an accelerated rate. It will allow us to deliver even more innovative, leading-edge solutions to our customers.”

Larry Prior, chief executive officer and president of CSRA, said, “Our combination with General Dynamics represents an excellent outcome for CSRA’s stockholders, employees and customers. It builds on strong shared values, culture and a passion for serving our customers’ missions. We believe that this combination creates a clear, differentiated leader in the Federal IT sector, with a full spectrum of enterprise IT capabilities, including unique depth in Next-Gen offerings in conjunction with our commercial IT alliance partners.”

Novakovic continued, “I am very pleased to welcome CSRA’s talented leadership team and employees. This combination brings together two industry leaders with highly complementary capabilities to create a strong business with approximately $9.9 billion in revenue and double-digit EBITDA margins in the consolidating Government Technology Services sector.”

GD had a trade volume of 45359 shares as compared to average trading capacity of 1490.75 shares. The firm has price to sales ratio of 1.96 and its price to book per share was 5.40. Similarly dropped performance for the quarter recorded as 5.36% and for the year was 13.63%, while the YTD performance remained at 2.99%.

LEAVE A REPLY

Please enter your comment!
Please enter your name here