There have been a lot of Mergers & Acquisitions in the RF & Microwave Industry in 2016. This slideshow goes over the key mergers and acquisitions that took place this year.
Sony announced that they have reached an agreement with Altair Semiconductor and its major shareholders to acquire the company. The purchase price is 212 million U.S. dollars (approximately 25 billion yen). Sony expects to complete the acquisition in early February, 2016. Altair, is an Israel-based company, that owns modem chip technology and related software for LTE (Long Term Evolution), a 4G cellular standard for mobile devices. Altair develops and sells products focused on LTE technology, and its modem chips stand out for their low power consumption, high performance and competitive cost.
LTE is already widely used in data communication for mobile phones, and is also expected to play a pivotal role in the interconnection of the Internet of Things ("IoT"). Click here to learn more
Cree has announced the execution of a definitive agreement to sell their Wolfspeed Power and RF division (“Wolfspeed”), which includes the silicon carbide substrate business for power, RF and gemstone applications, to Infineon Technologies for $850 million in cash.
In 2015, Cree announced their strategy to become a more focused LED lighting company. As part of this strategy, they also announced the proposed Spinoff and IPO of Wolfspeed to create a more focused Power and RF management team for which they raised capital to fuel Wolfspeed’s growth and unlock value for their shareholders.
Subsequent to that announcement, they were approached by several parties interested in acquiring the business directly. After evaluating the strategic options, they concluded that selling Wolfspeed to Infineon would be the best decision for their shareholders, employees and customers. Click here to read more
Analog Devices and Linear Technology have announced that they have entered into a definitive agreement under which Analog Devices will acquire Linear Technology in a cash and stock transaction that values the combined enterprise at approximately $30 billion. Upon completion of the acquisition, Analog Devices will become one of the largest global analog technology companies with approximately $5 billion in anticipated annual revenues.
The combination of Analog Devices and Linear Technology brings together two of the strongest business and technology franchises in the semiconductor industry. Their shared focus on engineering excellence and their highly complementary portfolios of products will work very well for them. This unique combination of engineering talent, technology, and application domain expertise will create unparalleled innovation and support partner for customers. Click here to read more
Qorvo recently announced that it has signed a definitive agreement to acquire GreenPeak Technologies. This acquisition of Netherlands-based GreenPeak will allow Qorvo to expand its customer offering to include highly integrated RF solutions and systems-on-a-chip (SoCs) for the connected home and the rapidly growing Internet of Things (IoT).
According to Gartner, Smart Home networking and IoT markets addressed by 802.15.4, ZigBee and Bluetooth Low Energy (BLE) technology are estimated to grow to $2.3 billion by 2020; and related smart markets such as retail, agriculture, automotive, lifestyle and commercial lighting are expected to grow to $4.9 billion by 2020. Beyond smart home networking, demand is growing to connect a variety of devices including HVAC, energy, security, home health, and remote controls utilizing innovative ultra-low power wireless data communication SoCs. Click here to read more
Genstar Capital announced the acquisition of Infinite RF Holdings (IRF). Infinite RF holdings compromises of three RF Component Brands - Pasternack, Fairview Microwave and Pastenack China. Based in Irvine, CA, Infinite RF offers a broad range of connectivity components and assemblies serving the aerospace/defense, industrial, government, consumer electronics, instrumentation, education/medical, and telecommunications markets. They serve a global engineering customer base with deep technical expertise and one of the broadest inventories of RF products available for immediate shipment.
Rob Rutledge, Managing Director at Genstar Capital, said, "The IRF management team, led by CEO Terry Jarnigan, has done an excellent job building a strong reputation and a loyal customer base through intense customer focus and flawless execution. Click here to read more
Mercury Systems has successfully completed the acquisition of entities of Microsemi Corporation comprising substantially all of the assets related to three businesses: embedded security; RF and microwave; and custom microelectronics in May 2016. All three businesses are primarily focused on the defense electronics industry. This acquisition, combined with their existing portfolio of sensor processing chain solutions, positions Mercury as one of the defense industry’s leading commercial embedded secure processing company.
The new capabilities will enable them to provide their customers an expanded suite of affordable, sophisticated RF/Microwave and digital processing solutions for streaming signal processing, image processing and EW applications. Click here to read more
Dassault Systèmes announced that they have entered into a definitive agreement to acquire Computer Simulation Technology (CST), for approximately 220 million euros. With the acquisition of CST, based near Frankfurt, Germany, Dassault Systèmes will complement their industry solution experiences for realistic multiphysics simulation on the 3D EXPERIENCE platform with full spectrum EM simulation. The CST STUDIO SUITE software is used by designers and engineers at more than 2,000 companies in the high-tech, transportation and mobility, aerospace and defense, and energy industries to evaluate all types of EM effects at every stage of electronic system design processes. Customers of their software suites include Airbus Defence and Space, Bosch Group, Frauscher Sensor Technology, Sirona and many more. In 2015 CST posted revenues of about 47 million euros. Click here to read more
Carlisle announced the acquisition of Micro-Coax, a supplier of high-performance, high frequency coaxial wire and cable, and cable assemblies for mission-critical RF/microwave applications for defense, satellite, test and measurement and other industrial customers.
With annual sales of approximately $45 million and 235 employees, Micro-Coax has manufacturing facilities in Pottstown, PA and a joint venture operation in Blackburn, UK. This company has been in business for over 50 years and is a supplier to the world’s leading defense, aerospace and electronics companies. They designs, manufactures and sells customized, high-reliability wire and cable for signal transmission on defense, space and satellite platforms and in high-end industrial equipment. Their well-known brands include UTiFLEX flexible microwave cable assemblies, UTiFORM hand formable cable, M-FLEX cable assemblies and ARACON metal clad fiber. Click here to read more
Heptagon has announced acquisition of the RF Digital Corporation, including the RFduino and recently released Simblee, component-sized wireless module. This move further strengthens their position in the rapidly emerging IoT market and leverages the synergies of both companies by combining easy-to-connect modular solutions from RF Digital with Heptagon's expertise in sensing, illumination and 3D imaging solutions.
RF Digital's newest technology and product line - Simblee - incorporates Mobile, Bluetooth Smart, Mesh, Cloud and other forms of wireless communication. With its unique “Push UI” technology, billions of users can interact with Simblee-connected devices instantly without needing to download additional mobile applications for each IoT product. Click here to read more
FormFactor (NASDAQ: FORM) and Cascade Microtech, Inc. (NASDAQ: CSCD) have announced that they have entered into a definitive agreement under which FormFactor will acquire all outstanding Cascade shares in a cash and stock transaction.
This combination creates significant scale by combining complementary market leadership positions in semiconductor test, measurement and characterization applications. By leveraging combined global support and channel investments across a product line that spans from engineering to production test applications, the combined company is uniquely positioned to solve customers’ most difficult test challenges from engineering to production. Click here to read more
Computer Simulation Technology AG (CST) announced the acquisition of a source code license for the Portunus system simulator, a product of Adapted Solutions GmbH and the start of a multi-year collaboration contract.
System simulation helps engineers working on applications such as electrical, energy systems, power electronics and drives with many elements interacting in multiple domains. This Portunus simulator models systems using approaches such as network, block diagram and state machine in order to simulate electrical, mechanical and thermal systems in time and frequency domain as well as for steady-state (DC calculation) and operating point (OP). Click here to read more
Arrow Electronics has signed a definitive agreement to acquire the global internet media portfolio focused on technology and electronic design from UBM. The titles and websites include EE Times, EDN, ESM, Embedded, EBN, TechONline, and Datasheets.com. As part of the agreement UBM received $23.5 Million in cash for this acquisition. In 2015 these assets generated revenues of $19m – $16m online and $3m print. The sale is subject to customary closing conditions and regulatory clearance in China.
Last year, Arrow acquired the United Technical Publishing arm of Hearst Media. With this agreement with UBM, they strengthen their position as a foremost thought leader and trusted advisor in IoT and technology design trends. Though Arrow says that these publications will run independently, it is tough not to favour their distribution business (might not happen instantly, but over time this will become an issue). Click here to read more
API Technologies has announced a definitive agreement to be acquired by an affiliate of private equity firm J. F. Lehman & Company ("JFLCO"), which specializes in the aerospace, maritime and defense industries.
Under the terms of the agreement, a newly formed affiliate of JFLCO will acquire all of the outstanding shares of API Technologies' common stock for $2.00 per share in cash in a merger transaction. The cash consideration represents a premium of approximately 98% to API's closing share price on February 26, 2016 and a 74% premium to its weighted average trading price over the trailing 30 days. The transaction is expected to close in the second fiscal quarter of 2016. Under the new ownership, API will have the liquidity and capital structure needed to execute on API’s various business improvement and growth plans which will create a stronger business for their customers and employees alike. Click here to read more
Würth Elektronik iBE GmbH, headquartered in Thyrnau near Passau (Germany), has acquired the family-run Büchele Group. With the merger, Würth Elektronik iBE will further strengthens their position as a market and technology leader in the automotive sector. As a result of this acquisition Büchele will get access to the internationally oriented distribution structure of Würth and the Würth Elektronik eiSos Group. Belonging to the Würth Group in the future will also mean even more extensive investment in technology and product development, thus creating security for customers, the company and its employees.
With the purchase, Würth Elektronik iBE aims to further expand its position as a market and technology leader in the field of electronic EMC components and inductors for automotive applications. Click here to read more
MaxLinear has announced the acquisition of certain assets and the assumption of certain liabilities related to Microsemi Broadband Wireless Division, which was previously part of PMC-Sierra. These acquired assets and assumed liabilities specifically address wireless infrastructure markets, including wideband RF transceivers and synthesizers for 3G, 4G, and future 5G cellular base station and remote radio head (RRH) unit platforms.
The acquisition will accelerate their market expansion efforts in the wireless infrastructure space. Based on third-party data and management estimates, MaxLinear estimates that the serviceable available market for wireless base station transceivers was approximately $500 million in 2015, and is expected to grow at a substantial rate over the next 5 years. This acquisition complements their multi-year organic development initiative in wireless microwave backhaul solutions. Click here to read more
Quadrant Management’s Ted Deinard announced that they have acquired MI Technologies, LLC (MI) and will merge MI with its portfolio company NSI. Merging these two premier microwave measurement companies into a single entity will allow them to combine their resources to bring quality, cost effective products and systems to their customers. Click here to read more
II‐VI Incorporated, a leader in semiconductor lasers, announced today that it signed agreements to acquire Anadigics and EpiWorks for a combined $110 Million. These acquisitions will expand its technology platforms and production capacity for semiconductor lasers with a scalable 6‐inch epitaxial growth and wafer fabrication platform. The acquisitions will further position the company to serve fast‐growing markets addressed by Vertical Cavity Surface Emitting Lasers (VCSELs). VCSELs provide unique advantages in a variety of applications in consumer electronics, data centers, sensing, medical and industrial markets and are expected to grow at greater than 20% a year.
EpiWorks, Inc. is a global leader in high volume epitaxial growth of compound semiconductor wafers for electronic and photonic device applications. Located in Champaign, IL, it has 2015 revenue of approximately $14 million. Click here to learn more
Giga-tronics has announced the sale of its Power Meter, Amplifiers, Sensors, and legacy Signal Generator product lines to Spanawave Corporation. The product lines will transfer to Spanawave sequentially in phases beginning with certain sensor and amplifier products (effective immediately), with the final product line transfer (legacy Signal Generators) estimated to be completed in July 2016. Payments totaling $1.5 million will be made by Spanawave to Giga-tronics over the phased transition period with one-half of the payments ($750,000) expected to be received between June and July 2016. In addition, Spanawave will be purchasing existing inventory for these products in phases. Giga-tronics will continue to manufacture the related products until the respective product line transfer is complete. Click here to learn more
Smiths Microwave has announced the restructuring of TECOM, TRAK, and Millitech into a single integrated business. Organized as Smiths Microwave Subsystems, the business unit includes Millitech in Northampton and South Deerfield, MA, TECOM Industries in Thousand Oaks, CA, and TRAK Microwave in Tampa, FL. The integration is designed to provide enhanced value to customers through a more integrated product offering and improved performance of all areas of the business. The team will continue to use the established brands of Millitech, TECOM and TRAK and remain as three separate legal entities to ensure continuity in the contracting process.
Microwave Subsystems offers a strong heritage of providing highly specialized RF/microwave subsystems, precise time and frequency systems and antenna solutions to defense and commercial customers. Click here to read more
xG Technology has announced that it has entered into an agreement to acquire the assets of Integrated Microwave Technologies, from Skyview Capital. The $3 Million purchase price reflects a combination of cash and long-term debt. The purchase is expected to close by no later than Feb. 15, 2016.
IMT, which recorded annual revenues of $7.2 Million in 2015, has 20 years of experience in the design and manufacture of state-of-the-art wireless digital and analog video products. IMT’s primary market focus is in the following sectors: broadcast (with clients including, but not limited to, the major broadcast television networks, and NFL, MLB and NHL professional sports teams); and MAG (military, aerospace and government), with clients ranging from local and national law enforcement agencies, Department of Defense agencies and surveillance firms. Click here to read more
Microsemi announced that their wholly-owned subsidiary Lois Acquisition Corp. successfully merged with and into PMC-Sierra, Inc., completing the acquisition of PMC. Under Section 251(h) of the General Corporation Law of the State of Delaware, no vote of PMC's stockholders was required to consummate the merger.
At the effective time of the merger, each outstanding share of PMC common stock (other than shares directly owned by PMC, Microsemi, Lois Acquisition Corp. Click here to learn more