6 May 2010


Mimix to merge with M/A-COM Tech

M/A-COM Technology Solutions Inc of Lowell, MA, USA, a supplier of semiconductors, components, and subassemblies for use in RF, microwave and millimeter-wave applications, and Mimix Broadband Inc of Houston, TX, USA have announced that their respective corporate parents have signed a definitive merger agreement that will add Mimix and its subsidiaries to the M/A-COM Tech family of companies. Mimix Holdings Inc and its subsidiaries will join M/A-COM Tech as subsidiaries of M/A-COM Technology Solutions Holdings Inc. Subject to customary closing conditions, the transaction is expected to close in late May. Financial terms were not disclosed.

M/A-COM was founded in the 1960s, but in 1995 was acquired by Pennsylvania-based AMP Inc, before becoming Tyco Electronics’ Wireless Systems Segment after Tyco International Inc’s acquisition of AMP in 1999. In September 2008, the defense & aerospace and commercial segments of M/A-COM Inc was acquired by UK-based aerospace technology developer Cobham plc, which in March 2009 sold off the commercial segment (renamed M/A-COM Technology Solutions Inc) for up to $90m to John Ocampo, co-founder, owner and president of Silicon Valley-based private equity fund GaAs Labs LLC (and co-founder of Sirenza Microdevices Inc). GaAs Labs is focused on providing financing and operational expertise to help grow companies addressing communications semiconductor and related markets. The firm partners with entrepreneurs and management teams to increase portfolio companies' growth and profitability.

M/A-COM Tech provides semiconductor, active and passive component, and subassembly design solutions and products (using silicon, GaAs, InGaAs, InP, SiGe and silicon ICs) for RF, microwave and millimetre-wave applications from facilities in Lowell, MA and Torrance, CA. Infrastructure products continue to be provided by its facility in Cork, Ireland, and Laser Diode products in Edison, NJ, USA.

With offices in Houston, Sydney in Australia, Belfast in Northern Ireland, UK and Hsinchu in Taiwan, fabless firm Mimix combines semiconductor design expertise and communications systems background to develop gallium arsenide (GaAs) semiconductors from DC to 50GHz for RF, microwave and millimeter-wave applications. The company has a highly diversified product line serving top-tier telecom, satellite and defense companies worldwide.

Anticipated benefits of the merger include:

  • adding breadth to M/A-COM Tech's portfolio of high-performance semiconductors, as well as opportunities for margin expansion and cross-selling;

  • increasing penetration of high-growth, profitable markets, including point-to-point radio and MoCA applications;
  • strengthening M/A-COM Tech's block diagram solution selling approach;
  • deepening of both companies' relationships with key global customers;
  • applying M/A-COM Tech's quality excellence and operational efficiencies to the Mimix supply chain; and
  • augmenting M/A-COM Tech's hybrid fab business model.

“This strategic merger with Mimix enables us to expand our product offering of high-performance, multi-function MMIC solutions, which Mimix has deep expertise in developing," says M/A-COM Tech’s CEO Joe Thomas. “Combining this innovative technology with our quality excellence and operational efficiencies solidifies our leadership position as a multi-market supplier and enables more rapid growth and margin expansion,” he believes.

The merger is favorable for both organizations, because it creates a robust combined company that leverages unique areas of expertise, says Mimix’s CEO Rick Montgomery. “Little overlap exists between the two product offerings, and there is significant synergy to be realized through our customer relationships, which will accelerate growth and market penetration,” he adds.

The merger creates “a superior business model that positions the combined M/A-COM Tech for profitable growth,” comments John Ocampo, founder of GaAs Labs LLC and chairman of M/A-COM Tech.

See related items:

Mimix celebrates ten years in business

Cobham divests M/A-COM Technology Solutions to GaAs Labs

Mimix raises $10m in fourth-round financing from GaAs Labs

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