Anadigics buys RF Solutions' WLAN product lines
The transaction is expected to broaden Anadigics customer base and accelerate the company s penetration into the emerging WLAN market. The product line addresses the IEEE 802.11b, IEEE 802.11a, and IEEE 802.11g (draft) WLAN standards.
The acquisition included RF Solutions WLAN PA development operation, sixteen employees comprised of engineering, sales and marketing and operations personnel, intellectual property comprised of PA and module product design, certain assets and the assumption of certain liabilities. Anadigics currently estimates that the transaction will be accretive to earnings on a GAAP basis in 2004.
The transaction will be accounted for as a purchase and includes an up-front cash consideration of $2.8 million and a contingent payment of up to 3.0 million common shares (current value around $6.4 million), based upon achievement of certain revenue targets over the next twelve months.
"Our new WLAN PA team brings to Anadigics enormous value in terms of products, applications support, design talent, customer relationships and entrepreneurial spirit to help drive our growth in the exciting WLAN market," remarked Bami Bastani, president and CEO of Anadigics.
"Industry analysts expect the WLAN market to grow at more than a 35% compound annual growth rate over the next several years. This acquisition compliments our existing product lines, design capabilities, and best-of-breed InGaP HBT technology while strategically positioning Anadigics to capture significant share of the WLAN market."
Marcus Wise, formerly responsible for sales and marketing at RF Solutions and now senior director of WLAN products at Anadigics, said, "I am extremely pleased to become a part of the Anadigics team. RF Solutions has strong relationships with industry leading WLAN system manufacturers and has made inroads into the WLAN market by introducing breakthrough products, such as the industry s first dual-band 802.11 power amplifier."
"As WLAN and cellular applications converge, we are uniquely positioned to introduce multi-band PA module solutions that integrate 802.11 and cellular handset functionality," continued Wise. "I look forward to continuing our leadership position in WLAN power amplifier solutions at Anadigics, by leveraging our combined technology, design, and marketing capabilities."
Anadigics newly acquired product line provides WLAN designers with a complete family of single and dual-band PAs and associated IP, which offers flexibility and cross- standard operability to address the needs of emerging WLAN systems. Several of these products have already been selected for design-ins on significant WLAN reference designs.
