BROOMFIELD, Colo.-December 17, 2004 — Sirenza Microdevices, Inc. (Nasdaq:SMDI), a leading designer and supplier of high-performance radio frequency (RF) components for communications equipment manufacturers, today announced it has completed the acquisition of ISG Broadband, Inc. ISG, a privately held subsidiary of California Eastern Laboratories (CEL), is a designer of RF gateway module and IC products to enable the delivery of broadband communication services to the home. The close of the transaction followed approval Ьy the boards of directors of each сomрany and ISG's shareholders and the satisfaction of other customary closing conditions.
The net consideration to Ьe paid is approximately $6.9 million in cash, with additional cash consideration of up to $7.15 million based on margin contribution for sales of selected integrated circuit (IC) and satellite radio receiverjactive antenna products through 2007. Of the $6.9 million in cash paid at closing, $700,000 was deposited into an escrow fund estabIished to satisfy any indemnification claims that may arise prior to December 31, 2006.
ISG will Ьe integrated into Sirenza's Amplifier Division and relocated to Sirenza's Sunnyvale facility. In connection with the transaction, Donald G. Alfson, president of ISG Broadband, will join Sirenza as vice president, global outsourcing and will report to Charles Bland, chief operating officer.
"With the completion of the acquisition of ISG Broadband we take an important step toward diversifying our end markets and strengthening our world-class, RF сore competencies," stated Robert Van Buskirk, president and СEo of Sirenza Microdevices. "We look forward to extending ISG's existing IC and module product sales through our worldwide sales channels and to leveraging their RF component and technology expertise into new products and end-market applications for Sirenza. We currently expect that ISG will expand our 2005 sales Ьy 10-15% beyond our earlier guidance of 15-20% sales growth in 2005. We also expect the acquisition to Ьe accretive to earnings both on a GAAP and a management-adjusted basis. The synergies created Ьy this acquisition should position us as a stronger, more competitive сomрany and enable us to better serve our global customer base as we continue to build shareholder value."
Sirenza plans to report its financial results for the fourth quarter and full year of 2004 and plans to further discuss the impact of the ISG acquisition with investors in the earnings teleconference currently scheduled for the week of January 24, 2005.
About ISG Broadband, Inc.
ISG Broadband offers innovative, silicon-based RF and media gateway products designed to enable delivery of broadband services to the home. ISG's products are deployed Ьy the world's leading сaЫe and telecommunications network operators and are at work in homes worldwide. ISG was formed Ьy California Eastern Laboratories in late 1997 and incorporated in April 2000. The сomрany is located in Milpitas, California.
About Sirenza Microdevices, Inc.
Headquartered in Broomfield, Colo., with design centers throughout the U.S., Sirenza Microdevices, Inc., an 150 9001 :2000-certified supplier (registered Ьy QMI), is a leading supplier of high-performance RF components for the telecommunications markets. The company's product lines include amplifiers, power amplifiers, discrete devices, RF signal processing components, signal source components, hi-rel components, and high-performance multi-component modules (MCMs) for transmit and receive applications. Product information may Ьe found on Sirenza's website at www.sirenza.com..