REMEC buys wireless infrastructure specialist for $160M

REMEC Inc. will acquire RF power amplifier specialist Spectrian Corp. for $160 million in stock and cash, causing Spectrian's shares to spike in Monday trading.

Spectrian is one of the few major suppliers of RF power amplifiers, with companies like Ericsson and Nokia relying on in-house development. Spectrian's shares were at $13.30 in midday trading, up over 20 percent from Friday's $10.85 close.

The purchase will make Spectrian's single- and multicarrier RF amps for cellular/PCS systems available for REMEC's high-frequency subsystems used to transmit voice, data and video over wireless networks.

REMEC chairman and chief executive officer Ronald Ragland called the acquisition a "synergistic transaction" in light of Spectrian's technical expertise, distribution channels and relationships.

For the quarter ended March 31, Spectrian announced revenues of $27.5 million, up from $25.5 million in the previous quarter. Revenues for fiscal year 2002 ended March 31 were $103.8 million, down from $179.8 million in fiscal 2001.

? Patrick Mannion

EE Times