Inphi to acquire Cortina Systems for $52.5M cash, $73.5M stock Inphi and Cortina Systems announced they have entered into a definitive agreement, under which Inphi will acquire Cortina's High-Speed Interconnect and Optical Transport product lines for $52.5M in cash and $73.5M in stock. The acquisition does not include Cortina's Access and Digital Home business, which is currently scheduled to be divested prior to the acquisition close and will continue as an independent company. The transaction is expected to close in late September or October. The acquisition is expected to add an additional $20M in revenue per quarter at higher gross margins than Inphi's gross margins. The company expects 50% improvement in total quarterly operating income as a percentage of revenue on a non-GAAP basis.
On The Fly: Analyst Downgrade Summary Today's noteworthy downgrades include: Autoliv (ALV) downgraded to Sell from Neutral at Goldman... Catamaran (CTRX) downgraded to Neutral from Buy at UBS... Citi (C) downgraded to Hold from Buy at Deutsche Bank... Esperion (ESPR) downgraded to Neutral from Outperform at Credit Suisse... Fortinet (FTNT) downgraded to Neutral from Buy at Citi... General Motors (GM) downgraded to Neutral from Buy at Goldman... Goldman Sachs (GS) downgraded to Hold from Buy at Deutsche Bank... IBERIABANK (IBKC) downgraded to Neutral from Outperform at Baird... Independent Bank (INDB) downgraded to Underperform from Neutral at Baird... Inphi (IPHI) downgraded to Market Perform from Outperform at Northland... MoneyGram (MGI) downgraded to Neutral from Outperform at Macquarie... Sensata (ST) downgraded to Hold from Buy at Cross Research... Teradyne (TER) downgraded to Buy from Conviction Buy at Goldman... Alcobra (ADHD) downgraded to Hold from Speculative Buy at WBB Securities.