GREENSBORO, N.C., Dec. 20 , 2007 — RF Micro Devices, Inc. (Nasdaq: RFMD), a global leader in the design and manufacture of high- performance radio frequency systems and solutions, and Filtronic PLC (LSE: FTC) today announced a definitive agreement pursuant to which RFMD will acquire Filtronic Compound Semiconductors Ltd, a wholly owned subsidiary of Filtronic PLC, for an acquisition price of approximately 12.5 million pounds in cash. The acquisition price includes the purchase of Filtronic Compound Semiconductors' six-inch GaAs wafer fabrication facility ("fab") at Newton Aycliffe, United Kingdom, which is currently a major supplier of GaAs pHEMT semiconductors to RFMD. The acquisition price also includes the purchase of Filtronic Compound Semiconductors' millimeter wave RF semiconductor business.
RFMD expects the addition of Filtronic Compound Semiconductors' high- volume GaAs fab to significantly reduce RFMD's GaAs pHEMT sourcing costs and provide additional capacity, thereby providing RFMD the opportunity to capture incremental revenue that otherwise might be subject to capacity constraints during calendar year 2008. Additionally, RFMD expects the addition of Filtronic Compound Semiconductors' millimeter wave business to strengthen the product portfolio of RFMD's recently formed Multi-Market Products Group and be accretive to RFMD's target margin profile for its multi-market business.
Bob Bruggeworth, president and chief executive officer of RFMD, said, "The acquisition of Filtronic Compound Semiconductors is expected to increase our manufacturing volume, lower our overall cost structure and provide RFMD with a high-volume supply of GaAs pHEMT, all of which support our aggressive growth expectations for cellular front ends. In addition, we anticipate that Filtronic Compound Semiconductors' strong millimeter wave business will add profitable, high-margin revenue to our Multi-Market Products Group and enable RFMD to further diversify into new growth markets that leverage our global leadership in RF."
RFMD expects to complete the acquisition before the end of its fourth fiscal quarter, ending in March 2008, subject to customary closing conditions.
About RFMD
RF Micro Devices (NASDAQ GS: RFMD) is a global leader in the design and manufacture of high-performance radio frequency systems and solutions for applications that drive wireless and broadband communications. RFMD's cellular front ends, cellular transceivers, RF components and system- on-chip (SoC) solutions enable worldwide mobility, provide enhanced connectivity and support advanced functionality in the cellular handset, cellular base station, wireless local area network (WLAN), CATV networking, aerospace, defense, and global positioning systems (GPS) markets. Recognized for its diverse portfolio of state-of-the-art semiconductor technologies and vast RF systems expertise, RFMD is a preferred supplier to the world's leading mobile device and RF equipment manufacturers.
Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001- certified manufacturer with worldwide engineering, design, sales and service facilities. RFMD is traded on the NASDAQ Global Select Market under the symbol RFMD. For more information, please visit RFMD's web site at www.rfmd.com.