Broomfield-based Sirenza Microdevices has reached a deal to be acquired by Greensboro, N.C.-based RF Micro Devices Inc. for about $900 million, the companies announced today.
Sirenza is a radio frequency component supplier to communications, consumer, aerospace, defense and homeland security industries. It has operations in the United States, China and Germany, including manufacturing facilities in Broomfield, Shanghai and Nuremberg.
RF Micro Devices Inc. designs and manufactures radio systems for mobile communications.
Under the deal, Sirenza shareholders will get 1.7848 shares of RFMD common stock and $5.56 in cash for each share they own. The deal is valued at $16.64 per share based on RFMD’s closing stock price Aug. 10 — a 17 percent premium over Sirenza’s closing stock price on Aug. 10.
That amounts to about $300 million in cash and $600 million in stock. The merger is expected to close in the quarter ending Dec. 29 and is subject to approval by shareholders of both companies and regulatory approval.
Sirenza options will convert into RFMD options. RFMD shareholders will own about 67 percent of the combined company while Sirenza shareholders will own about 33 percent.
The merger agreement has been unanimously approved by the boards of both companies. The two management teams will be combined, with Sirenza chief executive Bob Van Buskirk relocating to North Carolina and leading RFMD’s new Multi-Market Products Group. RFMD chief executive Bob Bruggeworth will be chief executive of the combined company.
The companies said the deal will grow RFMD’s market by about two-thirds to more than $20 billion and accelerate its penetration of high-growth markets, including broadband, wireless infrastructure, WiMAX and aerospace and defense. Sirenza will expand its revenue stream with RFMD’s semiconductor manufacturing, and the company can apply expertise from RFMD’s cell phone market to Sirenza’s markets, according to Buskirk.
“Our two businesses are highly complementary,” said Bruggeworth in a written statement.
Staff writer Kelly Yamanouchi can be reached at 303-954-1488 or at kyamanouchi@denverpost.com .
