TriQuint Semiconductor to Acquire Peak Devices
TriQuint Semiconductor, a leading manufacturer of wireless products, announced that it has entered into a definitive agreement to acquire Peak Devices Inc., Boulder, CO, in a cash transaction expected to close within the quarter. Peak Devices is a privately held, fabless semiconductor company with a highly experienced RF team that focuses on RF discrete transistor technology. Its market segments include two-way communications, FM and television broadcast, telecommunications, avionics, radar and military.
TriQuint chief executive officer Ralph Quinsey stated that “Peak has developed proprietary semiconductor technology that has broad application across multiple markets. With this technology, a single wide bandwidth amplifier may replace complex high power multiplexer-combined-amplifiers. This is a technology that has exciting potential.” Quinsey explained that “to replace multiple amplifiers, optimized for various frequency bands and modulation schemes, with a single device has long been a goal of our industry. This is a technology that can truly enable the software definable radio.”
The goal of Peak’s technology is to introduce a device that can cover multiple octaves of bandwidth, for example, 700 to 2800 MHz. This wideband technology can be incorporated into various materials including Gallium Arsenide (GaAs) and Gallium Nitride (GaN).
Bill McCalpin, Peak Devices CEO, will retain his responsibilities and report to TriQuint senior management. “The combination of Peak devices and TriQuint Semiconductor brings together extremely complementary capabilities. I see numerous opportunities for Peak’s technologies to enhance TriQuint’s existing product lines, as well as build new high power RF product segments. The culture and values of the two companies model innovative thinking and a passion for exceeding customer expectations. We are extremely excited about this opportunity to expand the reach of our proprietary innovations.”
Among its peers, TriQuint pioneered the strategy to diversify beyond mobile handsets. TriQuint’s revenue is nearly equal in size in mobile handset and multi-market RF products. “The acquisition of Peak Devices will bolster TriQuint’s focus on the multi-market general RF Power segments, and further position TriQuint as a technology leader in applications such as military communications, base station products and broadband solutions,” stated Quinsey.
In addition to its wide-band technology, Peak offers a complete portfolio of traditional RF power devices. “Peak provides customers with an alternative to costly redesign by developing drop-in replacements for LDMOS and bipolar RF power applications, thereby extending the life of products,” explained Mike Lincoln, Peak marketing manager.
Quinsey summarized that “The agreement brings to the TriQuint family a team of highly talented individuals. We look forward to working with the Peak Team in building the combined company’s success delivering advanced RF solutions for our existing customers and new customers.” Peak Devices is a profitable operation. TriQuint expects the acquisition to be accretive to earnings in 2008 and will provide details of the impact to fourth quarter 2007 and fiscal 2007 guidance during its third quarter 2007 earnings call.