CML Microsystems PLC on Tuesday said it has agreed to acquire Silicon Valley semiconductor company Microwave Technology Inc.
The Essex, England-based developer of mixed-signal, radio frequency and microwave semiconductors for global communications markets said the purchase of California-based Microwave Technology is for up to $18 million and is subject to US regulatory clearance. It will be funded from a combination of existing cash resources and the issue of new CML shares to the sellers in an approximate 60-40 ratio respectively.
The deal is expected to be completed in the first half of 2023.
Microwave Technology makes semiconductors for wireless communications applications. It recorded a $132,000 net loss on revenue of $6.5 million in 2022.
CML Microsystems said the acquisition will expand the group’s product portfolio, strengthen its support resources, increase research and development capabilities, and provided ‘essential knowhow and experience’ in system level understanding, product manufacturing and packing techniques.
CML Microsystems said it sees a significant opportunity to increase its current market share by internationalising Microwave Technology’s products, as it said the latter’s products are complementary to CML Microsystems’ existing offering.
Upon completion of the transaction, Microwave Technology Chair & majority shareholder Nathan Zommer will join the CML Microsystems board in a non-executive capacity.
The acquisition is expected to complete during the first half of 2023.
‘Microwave Technology’s dedicated and very experienced team will accelerate our multi-year growth strategy,’ said CML Microsystems Group Managing Director Chris Gurry.
‘Their technical knowhow, product range and trading relationships enhance the group’s existing competencies and a shared strong emphasis on cultural synergy and strategic future direction bodes well for the combined businesses over the medium term.
‘CML is committed to supporting Microwave Technology’s existing customer base globally and, in particular, the USA market.’
Zommer added: ‘We found a great cultural fit, and the combination of silicon, GaAs and GaN design and production capabilities, will provide our customers with wider solutions. I am looking forward to joining the CML board going forward.’
’GaAs’, or gallium arsenide, and ’GaN’, or gallium nitride, refer to two different types of semiconductor material.
Shares in CML Microsystems were up 0.4% to 491.90 pence each in London on Tuesday morning.
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