www.atmos-semi.com/mediacentre/articles/articles/041000 -
[Cached Version]
Published on: 12/6/2000
Last Visited: 3/21/2001
CEO Antoine Paquin.
...
If anyone understands the value of a buyout versus an IPO , it's Philsar CEO Antoine Paquin.In 1998 , Mr. Paquin sold his first company , Sky-stone Systems , to Cisco for $ 89.1 million.He used a portion of those proceeds to re-invest in a number of Ottawa-area startups , including one by the name of Extreme Packet Devices , the recent sale of which , Mr. Paquin observes , did very well for shareholders , including yours truly..
But what of Mr. Paquin's current company , Philsar Electronics.A fabless semiconductor firm like so many of Ottawa's other shining stars , Philsar differs in that it doesn't have a single product , but a full line of wireless solutions , from global positioning system ( GPS ) chips to low bit-rate , two-way communications chips ( potential applications : remote key entry to cars and homes ) , to chips that power high-speed wireless LANs , cell phones and pagers.Then there's the company's Bluetooth technology -- ultra low-power chips for short-hop wireless devices such as cellular phone headsets and hearing aids.
All this diversity creates an interesting dilemma for Philsar : to sell or to IPO.The company clearly has a great deal of value in its various product lines , but it is no longer a pure play , meaning it may not receive the lofty valuations of a company with a single , hot technology.
...
All the time , says Mr. Paquin.Any successful company gets acquisition inquiries all the time.Obviously we haven't taken any ( deals ) ..
And if Philsar's diversity works against its buyout prospects , it enhances its potential as a public company.
There will always be industry consolidators who will try to lead the pack in terms of offering complete solutions , Mr. Paquin says.