InvenSense is on sale

Which of These Companies Could Buy InvenSense?

STMicro, Sony, and Intel could all benefit from buying the motion sensor maker.

Leo Sun (TMFSunLion) Nov 4, 2016 at 1:00PM
Chipmaker InvenSense (NYSE:INVN) is reportedly interested in selling itself, according to multiple reports citing unnamed sources. InvenSense supplies motion sensors to Apple (NASDAQ:AAPL), Samsung, and other mobile-device makers, but it’s had a rough year because of rising competition and sluggish smartphone sales.



Analysts expect the chipmaker’s revenue to fall 24% this year, compared with 47% growth in 2015. Those bleak expectations sent the stock tumbling almost 40% over the past 12 months. With an enterprise value of just over $600 million, InvenSense now has an enterprise value-to-sales ratio of 1.6, making it a fairly cheap purchase for companies interested in its “best-in-breed” motion sensors — accelerometers and gyroscopes. Let’s take a closer look at the three most likely suitors for the struggling chipmaker.

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