22 August 2014

Murata to acquire Peregrine for $465m

Murata Electronics North America Inc, a subsidiary of Murata Manufacturing Co Ltd of Kyoto, Japan, has agreed to acquire all outstanding shares of Peregrine Semiconductor Corp of San Diego, CA, USA that are not already owned by Murata, for $12.50 per share in cash (a total transaction value of $471m, or $465m excluding Murata’s existing holding).

Peregrine is a fabless provider of radio-frequency integrated circuits (RFICs) and RF front-end (RFFE) solutions based on silicon on insulator (SOI) technology for mobile and analog applications. Upon closing the transaction, Peregrine will continue with its current business model but become a wholly owned subsidiary of Murata, as part of Murata’s strategy to expand its core business. Murata designs and manufactures ceramic-based passive electronic components and solutions, communication modules and power supply modules, including developing electronic materials and multi-functional, high-density modules. Annual revenue is ¥846bn (~$8.4bn).

“This acquisition will combine Murata’s world-leading mobile RF module capabilities with Peregrine’s best-in-class RF front-end products,” says executive VP Norio Nakajima, director of Murata’s Communication business unit. “Peregrine invented RF SOI, has led its development for 20 years, and accomplished a large number of industry firsts. We have worked closely with them for many years,” he adds. “Their innovation, including the Global 1 all-silicon integrated RF front-end, is a key strategic area for the mobile industry. This transaction will deepen our existing partnership and position us to meet the expanding opportunities in this field,” reckons Nakajima.

“Murata is the world’s leading RF module and filter provider, and we have benefited from our many years of partnership with them,” says Peregrine’s chairman & CEO Jim Cable PhD. “As part of the Murata team, we will be able to expand our existing partnership and speed the industry’s transition to an integrated all-CMOS RF front-end,” he reckons. “We remain committed to providing leading solutions to customers in all our current markets.”

The acquisition will deliver to Murata RF front-end capabilities and SOI process technology, which the firm describes as key areas for the growing integration of mobile technologies. As the radio requirements of smartphones and other wireless devices continue to become more complex, this complexity can only be solved with silicon technology, it is claimed. Peregrine supplies many wireless markets, including: smartphones, test & measurement, automotive, public safety radio and wireless Infrastructure. Peregrine will also provide Murata with a portfolio of intellectual property rights (IPR) covering the entire RF SOI front-end.

The transaction, which has been approved by the boards of directors of both firms, is expected to close by the end of 2014 or early 2015, subject to approval by  Peregrine’s stockholders, regulatory approvals, and other customary closing conditions.

See related items:

Peregrine and RFMD settle litigation over RF SOI technology

Peregrine completes collaborative sourcing and UltraCMOS license agreement with Murata

Peregrine to license UltraCMOS IP to Murata for design and manufacture of RF switches

Tags: Peregrine CMOS SOI Murata

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