M/A-COM Technology Solutions Holdings Inc. has acquired Aeroflex's diode business for $38 million in cash. The business, a subsidiary of Cobham, had approximately $37 million in revenue for the fiscal year ended December 31, 2014.
Aeroflex's products complement and strengthen MACOM's existing portfolio of RF and microwave diodes by adding JAN-certified diodes and transistors. According to MACOM, it is the leading supplier of RF/microwave diodes, and Aeroflex is #2.
John Croteau, president and CEO of MACOM, stated, "We expect that Areoflex's business will be extremely complementary to our existing product portfolio and further extend MACOM's leading position in high performance diodes. We believe that the transaction will provide meaningful scale advantages for our diode business and that once their facilities are fully integrated, MACOM will be able to drive beneficial COGS efficiencies that will make the transaction accretive to MACOM's non-GAAP operating margins and earnings per share."
MACOM funded the purchase price of the acquisition with available cash.
Ropes & Gray LLP acted as legal counsel to MACOM. Jaeckle Fleischmann & Mugel, LLP acted as legal advisor to Cobham.
A presentation discussing the transaction is available on MACOM's investor relations website here.
December 16 Update
Responding to Microwave Journal questions, MACOM said the acquisition included staff and facilities in Sunnyvale, Calif., Lawrence, Mass. and Londonderry, N.H. MACOM did not disclose the number of employees.