Boston, MA 02/25/2014 (wallstreetpr) – RF Micro devices, Inc. (NASDAQ:RFMD) effort to become the king in the sale of chips to mobile-handset makers is set to be heavily bolstered with its planned acquisition of TriQuint for $1.6 billion in an all-stock deal. The move was positively accepted in Wall Street as the Company’s stock jumped by a high of 29% in premarket trading as soon as the news came out.
RF Micro Devices terms of the deal.
The merger of the two companies will see TriQuint shareholders receive a total of 1.675 shares of the new company for every RF Micro devices, Inc. (NASDAQ:RFMD) share held. RF Micro Devices shareholder on the hand will be entitled to 1 share for the new entity. The merger will see the realization of a massive force in the industry able to guarantee combined revenue of $2 billion and the saving of $150 million in operational costs.
The deal is expected to close in the second half of the current fiscal year with RF Micro’s CEO Bruggeworth taking full command of the combined entity and TriQuint Semiconductor Inc. (NASDAQ:TQNT) CEO Ralph Quinsey taking over as a non-executive chairman. TriQuint shareholders are expected to own 50% of the combined company with the remaining 50% going to RF shareholders.
RF Micro devices, Inc. (NASDAQ:RFMD) move to buy TriQuint was necessitated by its plans of becoming the largest supplier of electronic devices to the two world largest electronic companies, Apple Inc. (NASDAQ:AAPL) and Samsung Electronics. The deal essentially means that the two companies will be equal partners compared to other mergers, with the combined company expected to take a new name with headquarters in Greensboro and Hillsboro.
The merger is expected to bring solid growth rates as it is expected to generate growth opportunities in key sectors of mobile devices aerospace /defense and network infrastructure.
RF Micro devices, Inc. (NASDAQ:RFMD) was up on Monday trading session by 21% to close the day at a high of $7.03.
