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Business |

AmpliTech to acquire Spectrum Semiconductor Materials

AmpliTech Group, a designer, developer and manufacturer of signal-processing components, has executed a definitive agreement to acquire the assets and operations of San Jose-based Spectrum Semiconductor Materials Inc., a specialty distributor of semiconductor components.

AmpliTech expects the purchase to deliver significant strategic and top and bottom-line benefits while also building on the company's technical and management expertise and distribution reach. Spectrum is on track to achieve unaudited 2021 revenue of USD 10 million - USD 11 mullion with 2021 pre-tax net income of approximately 25% of revenue. AmpliTech’s revenue for the past four quarters was USD 3.5 million and recently announced a record order backlog of USD 3.4 million following USD 1.2 million in new orders. Spectrum Semiconductors has a record current order backlog of USD 8 million in orders anticipated to ship through June 30, 2022, a press release detailing the transaction reads. AmpliTech will pay USD 8.0 million in cash for Spectrum Semiconductor, plus USD 1.5 million to be held in escrow through December 2022, to fund any purchase price or other adjustments, plus the grant of 188,442 restricted shares of AmpliTech common stock. With Spectrum Semiconductors, AmpliTech will gain a powerful distribution platform in the U.S., Europe, and Asia for its new line of monolithic microwave integrated circuit (MMIC) chip designs, and Spectrum has been building its radio frequency (RF) focused semiconductor revenue base. Foundry production of initial MMIC chipsets is targeted for commercial availability by the end of Q1 2022. "Spectrum Semiconductors is a perfect fit for advancing AmpliTech’s strategic goals and delivering shareholder value. With Spectrum, we will add a well-managed, growing business with a long-term track record for high quality and excellent customer service and the ideal distribution platform for the launch of our MMIC chip solutions. This transaction will allow us to more than triple our current annual revenue run rate, while also being immediately accretive to our bottom line," says AmpliTech CEO, Fawad Maqbool, in the press release. “Of equal importance, Spectrum brings us a highly satisfied, long-term, and global customer base with excellent penetration in our core end markets of aerospace, defense, automotive, and computing, along with a deep Silicon Valley presence, to support the launch of MMIC chip solutions we plan to bring to market by the end of Q1 2022,” Maqbool continues. Robert Larson, Spectrum CEO, adds, “Joining forces with AmpliTech is a big win for our company, our customers, and our suppliers. It provides us with a broader base of opportunity and exciting growth potential as we collaborate to bring AmpliTech’s premier MMIC chip solutions to market. I look forward to collaborating with the transition efforts with the AmpliTech team to execute on this exciting growth.” The transaction is expected to close within our fiscal year 2021, subject to the satisfaction of certain closing conditions.

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March 28 2024 10:16 am V22.4.20-2
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