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.

InvenSense

IMAGE SOURCE: INVENSENSE.

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.