News

WJ Communications Inc of San Jose, CA, USA, which designs and supplies RF products for wireless infrastructure, RFID and WiMAX markets, has agreed to be acquired by RF front-end component maker TriQuint Semiconductor Inc of Hillsboto, OR, USA for $1 per share (totaling about $72m).

“We have spent the last several months evaluating strategic alternatives for the company in order to maximize shareholder value and accelerate the success of our products and technologies in the global market place,” says WJ’s president and CEO Bruce Diamond. The agreement represents an 18% cash premium over the 7 March closing price of WJ’s common stock on the Nasdaq Global Market and a 50% premium over the average closing price for the prior 30 days. “We believe the combination will drive increased scale and efficiencies that will lead to a level of success commensurate with our innovation and product leadership,” he adds.

TriQuint says that the acquisition will: combine its advanced technologies with WJ’s design expertise; expand its presence in the wireless infrastructure market (cellular base-stations and wireless and cable broadband infrastructure); provide it with a Silicon Valley based design center; and accelerate the evolution to multi-function modules for infrastructure applications.

TriQuint adds that it has focused on applying its technical innovation and cost savings from the handset market to the evolving requirements of the communications infrastructure market. WJ likewise aims to combine RF power, switching and filtering in cost-effective module solutions for base-station and other infrastructure applications.

“We see great synergy with TriQuint in the areas of technology, customer relationships and manufacturing efficiencies,” says Diamond. “There is very little product overlap and a good cultural fit between our two organizations,” he adds. “We bring a broad product line of RF building blocks and modules as well as a talented Silicon Valley based design team to an established leader in the RF market space.”

“WJ’s solid reputation in these market areas [cellular base-stations and wireless and cable broadband infrastructure] is a wonderful complement to TriQuint’s strengths in design, manufacturing and customer support,” says TriQuint’s CEO Ralph Quinsey. “WJ’s technical expertise combined with the financial strength and stability of TriQuint will provide both innovative products and security of supply to the networks infrastructure customer base.”

WJ’s board of directors has unanimously approved the agreement and recommends that its stockholders approve and adopt it. The transaction has also been approved by TriQuint’s board and is expected to close within 90 days, subject to approval by WJ’s stockholders and other customary closing conditions.

Upon closing, it is expected that Diamond will continue with the organization, leading the business and assisting in integration. Excluding one-time charges, TriQuint expects the deal to be neutral to earnings during fiscal 2008 and accretive thereafter.

WJ receives second production order for TD-SCDMA MCM chipset

WJ has received its second production order for a TD-SCDMA multi-chip module (MCM) chipset. Worth slightly more than $1m, WJ expects to deliver product early in second-quarter 2008.

The order follows the previously announced initial production order of $500,000, which shipped earlier this quarter. Additional deliveries are anticipated later in 2008 in support of China’s rollout of TD-SCDMA (time division-synchronous code division multiple access: China’s 3G mobile telecoms standard).

“This order for our TD-SCDMA multi-chip module, combined with the initial production order received in January, represents the beginning of what we believe will be a significant opportunity in 2008,” says president and CEO Bruce Diamond.

In addition to the customized TD-SCDMA MCM module, WJ also provides various devices suited to the TD-SCDMA platform, including small-signal solutions consisting of mixers, 5V drivers and 28V power amplifiers.

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