RF Micro Devices is to acquire US-based RF semiconductor specialist Sirenza Microdevices in a deal valued at around $900m.
According to Bob Bruggeworth, president and CEO of RFMD, the deal creates the world's largest, most diversified RF company.
“The transaction will allow RFMD to capitalize on the RF integration and systems-level design expertise we continue to pioneer in the cellular world and apply those capabilities across Sirenza's broad footprint in multiple high-growth RF markets, including broadband/CATV, wireless infrastructure, WiMAX and aerospace and defence,” said Bruggeworth.
“RFMD and Sirenza serve customers representing a combined total addressable market of greater than $20bn,” said Bob Van Buskirk, president and CEO of Sirenza.
The merger will also allow Sirenza to see improved procurement efficiencies as a result of RFMD's volume semiconductor manufacturing capabilities.
“Our two businesses are highly complementary in terms of customers, markets, products and manufacturing expertise, and our combination will create an RF market leader with breadth, scale and capabilities that are unrivalled," said Bruggeworth.
The transaction is expected to be completed in RFMD's third fiscal quarter, ending December 29, 2007, and is subject to approval by the stockholders of both companies as well as regulatory approval.