Deals and IPOs

Chipmaker RF Micro to buy TriQuint for $1.6 billion in stock


Radio frequency chipmakers RF Micro Devices will buy peer TriQuint Semiconductor for about $1.6 billion in an all-stock deal to create a company that could better compete in selling chips to mobile-handset makers.

TriQuint shareholders will receive 1.675 shares of the new combined company for every share held and RF Micro shareholders will receive 1 share of the new entity, the two companies said in a joint statement.

The offer price represents a premium of 5.4 percent to TriQuint share's closing price on Friday.

"The world's demand for mobile data is growing exponentially," RF Micro Chief Executive Bob Bruggeworth said in the statement.

"The combination of TriQuint and RFMD creates a new leader in RF solutions with expertise in mobile devices and complex infrastructure and global defense applications."

The deal, which will create a company with combined revenue of more than $2 billion, is expected to save at least $150 million in costs, the companies said.

RF Micro said it expected the deal to close in the second half of 2014 and add to the company's adjusted profit in the first full year following closure.

RF Micro's Bruggeworth will be the CEO of the combined company, while TriQuint CEO Ralph Quinsey will serve as the non-executive chairman.

RF Micro shareholders will own about 50 percent of the new company, with TriQuint shareholders owning the rest.

Bank of America/Merrill Lynch was the financial adviser to RF Micro, while Goldman Sachs advised TriQuint.

RF Micro's shares closed at $5.81 on Friday on the Nasdaq.

By Reuters