TriQuint Semiconductor completes acquisition of optoelectronics business from Agere Systems

January 3, 2003

1 Min Read

HILLSBORO, Ore. -- TriQuint Semiconductor, Inc. (Nasdaq: TQNT) today announced that it completed the acquisition of a substantial portion of the Agere Systems optoelectronics business for $40 million in cash. The transaction includes the products, technology and some facilities related to Agere's optoelectronics business, which includes active and passive components, amplifiers, transceivers, transponders and MEMS. The transaction does not include Agere's business providing optoelectronics components for CATV systems based in California.For Agere's fiscal year ended September 30, 2002, the business TriQuint acquired had revenue of approximately $198 million. Agere announced in August 2002 it was seeking a buyer for all or parts of this business, and exiting the optoelectronics business as part of its corporate restructuring. TriQuint estimates this business will have revenue somewhere between $50 million and $75 million for calendar year 2003 and is projecting that it will be accretive to earnings by the fourth quarter of 2003.As part of the transaction, approximately 340 Agere employees will join TriQuint including approximately 215 in Pennsylvania and approximately 125 in Matamoros, Mexico.Commenting on the transaction, Ralph G. Quinsey, President and CEO of TriQuint stated, "I am extremely excited about the acquisition of this business. TriQuint has been involved in the design and production of integrated circuits for optical networks for many years. Combining TriQuint with the Agere optoelectronics business makes us one of the world's leading suppliers of optical modules and components. The consolidation of the operations and the restructured workforce will greatly reduce our costs compared to Agere's previous experience and puts us in a position for growth and profitability as the market recovers."TriQuint Semiconductor Inc.Agere Systems

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