Endwave Acquires ALC Microwave, Inc.
SAN JOSE, Calif., April 19, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Endwave Corporation (Nasdaq: ENWV), a leading provider of high-frequency RF modules for telecommunications networks, defense electronics and homeland security systems, today announced the acquisition of privately-held ALC Microwave, Inc. for approximately $6.6 million in cash. ALC is a leading provider of logarithmic amplifier subsystems to many US and international defense prime contractors. Since its founding in 1999, ALC has been delivering these unique amplifier products for use in early warning radars, threat detection equipment, electronic countermeasures and missile guidance systems. Additionally, ALC provides microwave and millimeter-wave components and subsystems for several other advanced defense electronics platforms not previously served by Endwave. ALC, with approximately 40 employees, is located in El Dorado Hills, CA, in close proximity to Endwave's Diamond Springs, CA operation. ALC's revenues were approximately $5.5 million in 2006. "This acquisition is strategically important to Endwave's mission in our defense and security business," said Ed Keible, CEO and President of Endwave. "In addition to expanding our product portfolio, we are pleased to gain access to critical OEM relationships fostered by ALC in the defense community," added Keible. "Given ALC's revenue growth, profitability, positive cash flow from operations and complementary market position, we view this transaction as an important step in continuing to build a profitable, thriving company." "We are excited to become part of Endwave Corporation," said Russ Alm, CEO and President of ALC Microwave, Inc. "We were drawn to Endwave's strategic vision for the defense and security markets and believe that the financial strength and world-wide sales reach of Endwave will allow us to further penetrate a broader range of market applications and customers."