CML Microsystems to acquire Microwave Technology
By Ali Mirza, NewsnReleasesSemiconductors acquisition CML-Microsystems MwT semiconductors
Semi players enter into deal worth US$18 million
CML Microsystems Plc has entered into a definitive agreement to acquire Silicon Valley based semiconductor company Microwave Technology Inc. (MwT) for a total consideration of up to US$18 million. Microsystems Plc develops mixed-signal, RF, and microwave semiconductors for global communications markets.
Founded in 1982, Microwave Technology Inc. (MwT) is a recognized leader in the design, manufacturing and marketing of GaAs and GaN Based MMICs, Discrete Devices, and Hybrid Amplifier Products for Commercial Wireless Communication, Defence, Space, and Medical (MRI) applications. It became part of the IXYS Corporation which was then acquired in 2018 by Littelfuse Inc., the global technology manufacturing company headquartered in Chicago.
In 2019, Microwave Technology Inc. (MwT) undertook a management buy-out from Littelfuse, at the same time transitioning away from manufacturing to a fabless semiconductor model with a specific focus on MMICs. The business currently consists of just over 20 employees and operates from its sole location in Fremont, California.
Expand the Group’s product portfolio
This acquisition will expand the Group’s product portfolio, strengthen and enhance its support resources and increase its R&D capabilities, providing essential knowhow and experience in system level understanding, product manufacturing and packaging techniques.
MwT’s products are complementary to CML’s existing offering and the large majority of its focus and client concentration is within the USA. The Board of CML believes there is a significant opportunity to increase its current market share by internationalizing MwT’s products.
The acquisition, which is subject to US regulatory clearance, is valued at a maximum of US$18m and will be funded from a mixture of the Company’s significant existing cash resources and the issue to the sellers of new CML ordinary shares in a ratio of approximately 60/40. The MwT team will provide highly complementary management capability for MMIC products.