Boston, MA 04/22/2014 (wallstreetpr) – Some details concerning the proposed merger of RF Micro Devices, Inc. (NASDAQ:RFMD) and TriQuint Semiconductor (NASDAQ:TQNT) will not be disclosed until the deal is completed. However, the companies continue to inform about the progress of the deal.
In the latest development, the companies announced that they will operate as subsidiaries of a holding company known as Rocky Holding Inc. The holding company will be a publicly traded business on NASDAQ exchange.
The companies are also likely to have dual headquarters in pursuit of a true sense of a merger of equals. TriQuint is based in Hillsboro while RF Mirco is based in Greensboro. The companies announced a tie-up proposal in February.
In the tie-up, RF Micro Devices, Inc. (NASDAQ:RFMD) will pay $1.56 billion in stock to join forces with TriQuint. The two companies provide radio frequency solutions and expect their tie-up to expand their market share, generate higher revenue and save costs.
RF Micro’s largest customers include Samsung Electronics. TriQuint, on the other hand, lists BlackBerry Ltd (NASDAQ:BBRY) and Apple Inc (NASDAQ:AAPL) among its largest customers. The fact that the companies serve some of the major players in the wireless communications industry makes the deal a decent one for investors with an interest in the fast-growth wireless communications market.
The combined company
RF Micro mainly provides power management chips and amplifiers while TriQuint mainly provides cellphone radio frequency chips. The resulting company from the combination of RF Micro Devices, Inc. (NASDAQ:RFMD) and TriQuint is estimated to have total revenue of about $2 billion.
RF Micro realized net income of $13.7 million in the first quarter of 2014. TriQuint realized $29.3 million in the first quarter of 2013.
Management of the new company
RF Micro Devices, Inc. (NASDAQ:RFMD)’s CEO Robert Bruggeworth would be the President and CEO of the new company. TriQuint’s CEO Ralph Quinsey would be the non-executive chairman of the company.
According to RF Micro spokesman, the companies will not disclose their brand name until after the merger is closed. The companies await shareholders and regulatory approval to seal the deal and hit the ground running.
