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Sirenza to acquire RF component supplier

Posted: 09 Feb 2006 ?? ?Print Version ?Bookmark and Share

Keywords:acquisition? Sirenza Microdevices? Premier Devices? RF components?

Sirenza Microdevices Inc. announced a definitive agreement to acquire Premier Devices Inc. (PDI) for a combination of common stock, cash and debt valued at approximately $72.1 million.

PDI designs, manufactures and markets complementary RF components featuring technologies common to existing and planned Sirenza products. With this acquisition, Sirenza, a supplier of RF components, will extend its design and manufacturing capabilities in Asia and Europe, said the press release.

The transaction has been approved by each company's board of directors and the shareholders of PDI, and is expected to close early in Q2 2006, subject to customary closing conditions.

Under the terms of the agreement, the shareholders of PDI will receive 7 million shares of Sirenza common stock, $14 million in cash and a $6 million note maturing in 12 months. Based on the closing price of Sirenza's stock last Feb. 3, 2006, the aggregate value of this consideration as of the signing of the definitive agreement was approximately $72.1 million.

For the fiscal year ended Dec. 31, 2005, PDI's unaudited financial results included net revenue of approximately $45 million and net income of approximately $4.8 million. Sirenza expects the acquisition to be accretive to its Q2 and fiscal year 2006 earnings on a pro forma basis. Sirenza also expects the combined company's net cash flow from operations to be positive for fiscal year 2006.

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