RF Micro Devices, Inc. (RFMD) is acquiring TriQuint for $1.6 billion in stock
RF Micro Devices, Inc. (NASDAQ:RFMD) is a radio frequency chipmaker that is acquiring TriQuint Semiconductor for $1.6 billion in an all-stock deal. This makes it easier for RF Micro to sell chips to mobile handset companies. TriQuint shareholders are going to receive 1.675 shares of the new combined company for every share held and RF Micro shareholders will receive 1 share of the new entity. This price is based on a 5.4% premium of TriQuint’s closing price on Friday.
“The world’s demand for mobile data is growing exponentially,” stated RF Micro CEO Bob Bruggeworth. “The combination of TriQuint and RFMD creates a new leader in RF solutions with expertise in mobile devices and complex infrastructure and global defense applications.”
The companies now have a combined revenue of over $2 billion and is expected to save at least $150 million in costs. The deal is expected to close in the second half of 2014.
Bruggeworth will be the CEO of the combined company. TriQuint CEO Ralph Quinsey will be the non-executive chairman. RF Micro shareholders are going to own around 50% of the new company and TriQuint shareholders will own the rest.