This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RF Micro, TriQuint Ink $1.5B Merger

NEW YORK (The Deal) -- Radio frequency components maker RF Micro Devices (RFMD) of Greensboro, N.C., said Monday that it agreed to acquire industry counterpart TriQuint Semiconductor (TQNT) in a tax free, all-stock merger valued at about $1.5 billion.

Terms of the deal call for TriQuint shareholders to receive 1.675 shares of the new combined company for each TriQuint share they own. RF Micro shareholders will get 1 share of the new combined company for each RF Micro share they own. After closing, shareholders from both sides will own 50% of the new combined company. The company's new board will be made up five members of each side's existing board.

The merger values TriQuint at $9.73 per share, representing a 5.4% premium over its Feb. 21 closing stock price of $9.23. The announcement sent TriQuint shares soaring by nearly 20%, to $10.99, at Monday's opening. RF Micro shares opened 15% higher, to $6.67.

Hillsboro, Ore.-based TriQuint, founded in 1985, makes components such as premium filters that are used mostly in mobile devices. The company has about 2,900 employees with operations in Texas, Florida, Costa Rica and the Philippines.

Must Read: SEC Tick Pilot Will Focus on Liquidity, Not IPOs

RF Micro CEO Bob Bruggeworth said Monday that increasing demand for mobile device software makes Monday's merger ideal. "The world's demand for mobile data is growing exponentially," he said.

Bruggeworth will lead the new company while TriQuint CEO Ralph Quinsey will become non-executive chairman.

"The alignment of culture between the two companies and the well matched products, capabilities and technologies will create compelling new opportunities," said Quinsey.

The two sides expect the merger to create up to about $150 million in annual savings with $75 million coming in the first full year after closing and another $75 million in the second year. The merger is expected to close sometime in the 2014 second half, pending shareholder and regulatory approval.

RF Micro in November 2012 purchased privately held Amalfi Semiconductor of Los Gatos, Calif., for $47.5 million.

Bank of America Merrill Lynch advised RF Micro which was represented by Weil, Gotshal & Manges' Keith Flaum, Jane Ross, John Scribner, Helyn Goldstein, John Brockland, Vadim Brusser, Alex Purtill and Tara Lancaster along with Womble Carlyle Sandridge & Rice.

Goldman Sachs (GS) and Perkins Coie LLP advised TriQuint.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
RFMD $16.59 -2.07%
TQNT $80.94 -1.47%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs