RF Micro Devices Merges With Sirenza
Broomfield, Colo.-based Sirenza makes RF components that can be used in everything from wireless devices to broadband boxes. The twelve-year-old company reported revenue of $46.7 million in the second quarter of 2007, up from $39 million in the previous year.
The deal, which includes $300 million in cash and the balance in stock, represents a 17 percent premium to Sirenza's closing price on Friday, valuing the company's shares at $16.64 apiece, Sirenza says.
Sirenza will help RFMD expand its portfolio beyond chips for mobile phone makers. Over its long history, Sirenza, which started as Matrix Microassembly in 1985, has built or bought its way into a number of markets, including aerospace and military applications and broadband home gateways, as well as wireless components.
Currently, RFMD is looking at the growth of 3G handsets as one of its main market drivers in the near-term. The Greensboro, N.C.-based company reported last week that it was the wireless industry's first company to ship 100 million WCDMA front ends for 3G handsets.
The deal is expected to close by the end of this year. Upon completion, RFMD will own about 67 percent of the combined company, with Sirenza holding the remainder.
— Dan Jones, Site Editor, Unstrung