TriQuint Semiconductor and WJ Communications Inc. announced a definitive agreement for TriQuint to acquire WJ. WJ is a supplier of radio frequency solutions for wireless infrastructure and will expand TriQuint’s reach into this market. Under the terms of the agreement, TriQuint will acquire by merger all outstanding shares of WJ for $1.00 per share, implying a purchase price of approximately $72 M. Excluding one-time charges, TriQuint expects the deal to be neutral to earnings during fiscal 2008 and accretive thereafter. The transaction has been approved by the Board of Directors of both companies and is expected to close within 90 days, subject to an affirmative vote by WJ shareholders and other customary conditions.
“We have spent the last several months evaluating strategic alternatives for the company in order to maximize shareholder value and accelerate the success of our products and technologies in the global market place,” said Bruce Diamond, president and chief executive officer of WJ Communications. “We are pleased to announce this agreement with TriQuint, which will provide our stockholders with a substantial cash premium over the recent trading price of our stock. Additionally, we believe the combination will drive increased scale and efficiencies that will lead to a level of success commensurate with our innovation and product leadership.”
Through this acquisition, TriQuint expects to expand its presence in the wireless infrastructure market comprised of cellular basestations and wireless and cable broadband infrastructure. “WJ’s solid reputation in these market areas is a wonderful complement to TriQuint’s strengths in design, manufacturing and customer support,” said Ralph Quinsey, CEO of TriQuint. “WJ’s technical expertise combined with the financial strength and stability of TriQuint will provide both innovative products and security of supply to the networks infrastructure customer base.”