On April 28, 2014 Skyworks Solutions announced that the company would form a joint venture with Panasonic in order to address the market for SAW and TC-SAW filters used in RF front-ends. Panasonic will contribute assets relating to the production of SAW and TC-SAW filters including patents and engineering talent. In return, Skyworks has agreed to pay Panasonic $148.5 million. The joint venture will lease current manufacturing space from Panasonic in Japan and Singapore, and when the joint venture deal closes, Skyworks will have a 66% stake in the entity with Panasonic holding the remaining 34%. After the two year anniversary of the deal closure Skyworks will have the right to purchase Panasonic’s share of the joint venture for $76.5 million. The deal is expected to close before the end of the third calendar quarter of 2014.
Is this one of Skyworks’ responses to the merger of two of the company’s biggest competitors, if so, what kind of an impact will this move have?
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