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On August 7, 2024
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byNordic signs LOI for business combination with Sivers Semiconductors' subsidiary
byNordic Acquisition (NASDAQ:BYNO) on Tuesday said it has signed a non-binding Letter of Intent with Sivers Semiconductors AB, a supplier of wireless and photonic integrated chips and modules for communications and sensor solutions, to merge its wholly owned Sivers Photonics subsidiary with byNordic. Sivers Photonics designs and manufactures advanced semiconductor lasers for photonic devices, primarily targeted for Artificial Intelligence in large data centers, optical communications and optical sensing applications. Source: Press Release More on byNordic Acquisition Corporation Financial information for byNordic Acquisition Corporation
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byNordic to merge with Sivers Photonics subsidiary By Investing.com
NEW YORK - byNordic Acquisition Corporation (Nasdaq: BYNO), a special purpose acquisition company, has announced its plan to merge with the Sivers Photonics Ltd subsidiary of Sivers Semiconductors AB (STO: SIVE). This strategic move is aimed at combining Sivers Photonics' expertise in advanced semiconductor lasers with byNordic's investment platform to capitalize on the growing demand for high-performance photonic devices in AI and other high-tech applications. Sivers Photonics, a prominent player in tunable multi-wavelength lasers, is poised to address the increasing needs for chip-to-chip connectivity in large data centers and other emerging technologies. With a projected total addressable market of $5 billion by 2027 for chip connectivity alone, the merger is set to tap into a lucrative sector driven by the expansion of generative AI applications. The anticipated merger aligns with the industry's shift towards silicon photonics (SiPh), which promises faster data transmission and significant reductions in power consumption, a critical factor as data centers are expected to account for up to 9% of total U.S. electricity usage by the decade's end. Sivers Photonics' expertise in SiPh positions the combined entity to meet these future demands effectively. The non-binding Letter of Intent (LOI) outlines the preliminary terms for the acquisition of Sivers Photonics by byNordic. The completion of the business combination is contingent on due diligence, definitive agreements, securing concurrent financing, and necessary regulatory and shareholder approvals. If successful, the merger will result in Sivers holding majority ownership in the combined publicly listed company, with operations headquartered in Silicon Valley, CA, while manufacturing will remain in Glasgow, UK. Legal counsel for the proposed transaction includes Loeb & Loeb LLP for byNordic and Pillsbury Winthrop Shaw Pittman LLP and Setterwalls for Sivers and Sivers Photonics. As byNordic Acquisition Corporation (Nasdaq: BYNO) gears up for its strategic merger with Sivers Photonics, investors are closely monitoring the company's financial health and market potential. According to InvestingPro data, byNordic is currently trading with a market capitalization of $116.74 million. The company's P/E ratio stands at 70.44, which adjusts to a more favorable 48.81 when considering the last twelve months as of Q1 2024. This adjustment suggests a positive reevaluation of the company's earnings potential in the near term. One of the notable InvestingPro Tips for byNordic is its low price volatility, which indicates a level of stability in its stock price movement. This could be a reassuring factor for investors who prefer less turbulent investments. Additionally, the company has been profitable over the last twelve months, which is a vital sign of financial health and could bode well for the merger's prospects. However, potential investors should be aware of byNordic's weak gross profit margins, an area that may require attention as the company moves forward with its merger plans. Moreover, the company's short-term obligations exceeding its liquid assets is a point of consideration when assessing the company's financial resilience. For those seeking more in-depth analysis, InvestingPro offers additional insights. There are six more InvestingPro Tips available for byNordic at https://www.investing.com/pro/BYNO, which could provide a more comprehensive understanding of the company's financial outlook and market position.
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ByNordic Acquisition Corp has signed a letter of intent for a business combination with Sivers Semiconductors' subsidiary, Sivers Photonics. The deal aims to create a Nasdaq-listed pure-play silicon photonics company.
ByNordic Acquisition Corp, a special purpose acquisition company (SPAC), has entered into a non-binding letter of intent (LOI) with Sivers Semiconductors AB for a potential business combination with its subsidiary, Sivers Photonics Limited. This strategic move aims to create a Nasdaq-listed pure-play silicon photonics company, marking a significant development in the semiconductor industry 1.
The proposed transaction values Sivers Photonics at approximately $150 million on a debt-free basis. This valuation is subject to customary adjustments and assumes a $10.20 per share price for ByNordic's common stock. The deal structure involves ByNordic acquiring 100% of Sivers Photonics' equity from Sivers Semiconductors 2.
As part of the agreement, Sivers Semiconductors is expected to receive $30 million in cash at closing, with the remaining consideration in the form of shares in the combined entity. This structure allows Sivers Semiconductors to retain a significant stake in the new company, potentially benefiting from future growth 1.
The merger is set to create a formidable player in the silicon photonics market. Sivers Photonics, known for its advanced compound semiconductor fabrication capabilities, is poised to leverage ByNordic's public listing to accelerate its growth and innovation in the field. The combined entity is expected to be well-positioned to capitalize on the increasing demand for high-speed optical communications and sensing technologies 2.
While specific details about the leadership structure of the combined entity have not been disclosed, it is anticipated that key executives from both ByNordic and Sivers Photonics will play crucial roles in steering the new company. The merger is expected to bring together complementary expertise and resources, potentially driving synergies in research, development, and market expansion 1.
The completion of the business combination is subject to several conditions, including the negotiation and execution of definitive agreements, approval by ByNordic's shareholders, and other customary closing conditions. While a specific timeline has not been provided, both parties have expressed their commitment to working diligently towards finalizing the transaction 2.
This merger represents a growing trend of consolidation and specialization within the semiconductor industry. By creating a pure-play silicon photonics company, the deal aims to address the increasing demand for advanced optical technologies in various sectors, including telecommunications, data centers, and emerging applications such as autonomous vehicles and augmented reality 1.
Reference
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Sivers Semiconductors AB announces strong Q2 2024 results, highlighting strategic growth, key 5G design wins, and a major partnership with a leading US-based telecom infrastructure company.
3 Sources
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