Silicon Motion Technology Corporation · NASDAQ:SIMO
Silicon Motion Technology — Merger or Acquisition (May 2022)
12 slides from Silicon Motion Technology's merger presentation, May 5, 2022
Slide 1: MaxLinear to Acquire Silicon Motion
MaxLinear to Acquire Silicon Motion May 5, 2022 Building Transformative Scale
Slide 2: Cautionary Note Concerning Forward-Looking Statements
Cautionary Note Concerning Forward - Looking Statements This presentation contains forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . Unless otherwise indicated, all forwar
Slide 3: Strategic Rationale
3 Strategic Rationale Accelerates Strategic Infrastructure Growth Establishes Meaningful Position in Storage Builds Transformative Operational Scale Creates Highly Profitable $2B+ Revenue Company Expected non - GAAP EPS Accretion of at Least 25%
Slide 4: Combination Creates $2B+ Revenue Company
4 Combination Creates $2B+ Revenue Company
Slide 5: Building Transformative Operational Scale
Building Transformative Operational Scale Headcount ~3,000 Employees IP Portfolio >4,000 Patents Units Shipped >1 Billion LTM Revenue ~$2 Billion LTM R&D Investment ~$400 Million LTM Enhanced scale to drive substantial operating benefits for customers, suppliers, and employees
Slide 6: Solid Long-Term Growth in Storage
6 Solid Long - Term Growth in Storage 1,860 EB 439 Exabyte 25% 31% 23% 21% 18% 27% 30% 25% Enterprise SSD Client SSD Smartphone Others Worldwide NAND Demand Forecast 2020 2025 Expanding into adjacent growth markets Steady transition to merchant silicon Accelerating demand for cloud - based solutions
Slide 7: Complementary Technology Portfolios
Complementary Technology Portfolios 7 Storage technology portfolio helps to further capture end - to - end platform functionality
Slide 8: Transaction Adds Over $5B of New TAM
Transaction Adds Over $5B of New TAM MaxLinear $8B TAM 2022 $2.0B $2.1B $2.2B $2.1B Combined $15B TAM 2024 $5.1B $5.0B $4.9B Industrial / MM Broadband Infrastructure Connectivity Broadband & Connectivity Industrial & Infrastructure Storage Compelling positions in Broadband, Connectivity, Infrastruct
Slide 9: Unified Focus on Infrastructure Opportunity
9 Unified Focus on Infrastructure Opportunity Data Center & Enterprise Opportunities Strategic Infrastructure Convergence Server - Boot drive Enterprise Server Storage Appliance Hyperscale Applications Data Reduction & Security Expanding High - Performance Solutions into Enterprise SSD Market Strong
Slide 10: Combined Pro Forma Financial Model
10 Combined Pro Forma Financial Model Combined w/ Synergies Revenue $947 $982 $1,929 Gross Margin 62% 51% 58% EBIT $280 $293 $673 EBIT Margin 30% 30% 35% Highly profitable operating model Target cost synergies of $100M spread across COGS and OPEX Non - GAAP EPS accretion of at least 25% eighteen mon
Slide 11: Transaction Summary
11 Transaction Summary Expecting Closing • Expected transaction closing in the first half of 2023 • Subject to customary closing conditions including applicable regulatory approvals • MaxLinear shareholder vote not required Financial Impact • Immediately accretive to operating margin, earnings per s
Slide 12: Thank you
MAXLINEAR Thank you
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