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15 November 2007


RFMD completes Sirenza acquisition and launches Multi-Market Products Group

RF Micro Devices Inc of Greensboro, NC, USA has completed its acquisition of RF component supplier Sirenza Microdevices Inc of Broomfield, CO, USA.

For each Sirenza share, stockholders have received a combination of $5.56 in cash and 1.7848 shares of RFMD common stock. Outstanding options to purchase Sirenza common stock were assumed by RFMD and converted into options to purchase RFMD common stock. Based on RFMD’s closing stock price on 13 November, the Sirenza stock is valued at $16.80 per share and represents an aggregate value of about $900m (about $300m in cash and the balance in RFMD stock). Sirenza common stock has ceased to be publicly traded and is no longer listed on Nasdaq.

The board of directors of the combined company consists of the current nine members of RFMD’s board and two new members from Sirenza’s board. Also, to capitalize on the expanded opportunities created by the merger, the management teams of RFMD and Sirenza are being combined.

“The acquisition of Sirenza Microdevices brings RFMD a broad set of customers and a diversified product portfolio of high performance RF components for multiple markets,” says RFMD’s president and CEO Bob Bruggeworth. “We are thrilled to add Sirenza's employees, stockholders and customers to our organization, and we look forward to executing on the many opportunities created by the combination of RFMD and Sirenza Microdevices, which we believe creates the world’s largest, most diversified and best positioned RF company."

As a result of the Sirenza acquisition, RFMD has announced the establishment of the Multi-Market Products Group (MPG), with Bob Van Buskirk (former Sirenza president and CEO) relocating to North Carolina as the group’s president. MPG joins the Cellular Handset Products Group (CPG), led by Eric Creviston, in reporting to Bruggeworth.

“We believe this transaction clearly serves the best interests of the shareholders of Sirenza and RFMD as well as the best interests of the customers, suppliers and employees of both companies,” says Van Buskirk.

MPG will drive its business through five market-oriented business units: aerospace and defense; broadband and consumer; wireless connectivity; wireless infrastructure; and standard RF components.

“We expect the formation of the Multi-Market Products Group will enable RFMD to significantly diversify its business and drive new, profitable growth opportunities beyond the cellular handset market,” says Van Buskirk. “RFMD has a tremendous range of technologies, products and supply chain capabilities that MPG can leverage and deploy to better serve our broad base of multi-market end markets and global customers.”

The firm cites examples of technology, products and supply chain benefits including:

  • The deployment of RFMD’s high-performance gallium nitride (GaN) process technology into power amplifiers (PAs) for CATV applications, power modules for new light-generation applications, and PA modules for cellular infrastructure and emerging WiMAX infrastructure applications;
  • the re-deployment of existing cellular handset intellectual property (IP) into a wide range of broadband, consumer and wireless connectivity products;
  • the addition of existing CPG products, currently incorporated into highly integrated cellular handset RF solutions, to MPG's current standard products portfolio, such as mixers, RF switches, variable gain attenuators, control devices and PA ICs;
  • access to advanced technologies currently in development by RFMD, including micro-electro-mechanical systems (MEMS), integrated RF shielding, multi-chip module (MCM) packaging and gallium arsenide technologies, including next-generation GaAs HBT and GaAs pHEMT;
  • the realization of significant supply chain efficiencies, including enhanced component and semiconductor wafer sourcing, cost-efficient IC packaging from common suppliers and greatly improved R&D development cycle times through RFMD’s vertically integrated wafer fabs, IC/module assembly facilities and test facilities.

“As the president of RFMD’s newly formed Multi-Market Products Group, I am extremely excited about our ability to grow our combined multi-market businesses,” says Van Buskirk. “We intend to expand margins by leveraging our technology base and robust global supply chain, and we believe we have a tremendous opportunity to achieve profitable growth as the acknowledged leader in RF solutions,” he concludes.

See related items:

RFMD’s acquisition of Sirenza approved by stockholders

RFMD’s 21% sequential growth driven by Polaris 3 shipments to Nokia and Motorola recovery

RFMD expands to accommodate cellular and multi-market demand

RFMD diversifies by acquiring Sirenza

RFMD, Skyworks and Triquint grew GaAs device market share to 55% in 2006

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