Sivers Semiconductors has completed the previously announced acquisition of MixComm to strengthen its position in 5G, SATCOM and Radar markets for current and future high frequency mmWave products. The acquisition provides a greatly increased customer base, expanded capacity, a broad IP portfolio and a strong presence across the US, Europe and Asia.
The purchase price of $135 Million for the acquisition has been satisfied through a cash payment of USD 22.5 million (approximately SEK 212 million at the current exchange rate), and the issuance of 39,187,320 new ordinary shares in the Company, corresponding to a dilution of approximately 18.3 percent (based on the number of shares in issue after completion). The shares issued to the sellers are covered by a lock-up of 12 months for 50 percent of the consideration shares and 18 months for the remaining 50 percent of the shares. A further up to 6,993,007 newly issued shares may be issued to the sellers subject to the satisfaction of certain commercial customer milestones within nine months from signing.
The selling shareholders of MixComm include its founders, employees, Kairos Ventures (a leading US venture capital investor focused on identifying and commercializing the world's leading scientific discoveries) and GlobalFoundries. Kairos will become a significant shareholder in Sivers after the completion of the acquisition. Todd Thomson, Chief Operating and Financial Officer of Kairos Ventures, has also today joined the board of directors of Sivers, as approved at the EGM in November 2021.
MixComm will be part of the Sivers Wireless business area within Sivers Semiconductors. Overall, the new expanded group is expected to create conditions for accelerated growth.
Through the merger, Sivers Wireless will increase its total number of design wins by approximately 70 percent to 44 and double the number of design wins that are expected to enter volume production within the next 12 months, from eight to 16 in total. MixComm currently has 18 design wins, including a design win with a leading Tier 1 5G infrastructure customer and a significant pipeline of potential new customer opportunities.
"It is very gratifying that we have now received regulatory approval from The Committee on Foreign Investment in the United States (CFIUS) to complete this transaction. We have seen very good progress within MixComm since we agreed the deal last October and are now looking forward to starting to deliver the very significant synergy benefits that we see from the combination," says Anders Storm, Group CEO of Sivers Semiconductors.