RF Micro Acquires Resonext

For $133 million, RF Micro gets extra ammo in the 802.11 battle

December 20, 2002

2 Min Read

GREENSBORO, N.C. -- RF Micro Devices, Inc. (Nasdaq: RFMD), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today announced the acquisition of Resonext Communications, Inc., a privately held company providing complete, highly integrated CMOS wireless local area network (WLAN) solutions for 802.11a and multi-band (802.11a/b/g) platforms.

The acquisition of Resonext expands RFMD's total addressable market and is expected to complement the Company's growing presence in 802.11b products. Resonext's product portfolio focuses on 802.11a and emerging multi-band WLAN technologies (802.11a/b/g).

RFMD issued $133 million in stock for all of the outstanding shares of capital stock of Resonext, including the shares issuable upon exercise of outstanding warrants and employee stock options. Fourteen million shares of stock were issued or reserved for issuance at a value of $9.50 per share, as determined by a trailing 20-trading day average price and a collar on RFMD's stock price of between $6.00 and $9.50 per share. In the current quarter ending December 31, 2002, RFMD currently expects to incur approximately $15.0 million in one-time acquisition charges in connection with this acquisition, subject to the completion of an independent valuation analysis. RFMD currently estimates the transaction will be accretive to earnings on a GAAP basis in the December 2003 quarter.

Jerry Neal, executive vice president of marketing and strategic development, said, "We're excited to join forces with Resonext. We believe our combined strengths and unique technology will position RFMD to become the leading provider of WLAN chipsets. Our 802.11b revenues have grown rapidly, and we expect to achieve double-digit sequential growth in units and dollars in the December quarter. We believe our acquisition of Resonext will provide even more compelling growth opportunities in calendar 2003 and beyond."

RF Micro Devices Inc. Resonext Communications Inc.

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