Alphawave IP completes acquisition of OpenFive
The combined company will accelerate Alphawave's product offerings and customer base while also driving greater scale and revenue growth from an expanded total addressable market.
"Today represents an important milestone for Alphawave. This acquisition accelerates our ambition to become a leading pure-play provider of connectivity technology, covering silicon IP and custom silicon solutions like chiplets. We are delighted to welcome the talented team from OpenFive, as well as their customers and partners. The combination adds scale and expands our expertise into custom silicon. The combined company is well positioned to capitalise on the growth opportunities we see in the digital infrastructure markets, and we are really excited about the long term prospects for growth," Tony Pialis, President and CEO of Alphawave in a press release.
Alphawave has completed the acquisition of OpenFive bringing OpenFive's high-speed connectivity system-on-chip (SoC) IP portfolio and a proven team based in India and Silicon Valley, and other global locations. The acquisition significantly increases Alphawave's customer base globally from 281 currently to over 80, especially in North America. Forecast FY 2023 revenue for the combined group is anticipated to reach between USD 325 million to USD 360 million with a path to a yearly revenue run rate of over USD 500 million in 2024.
Alphawave paid a total consideration of USD 210 million in cash plus customary working capital adjustments.
"We are delighted to welcome the OpenFive team to Alphawave and I would like to thank both teams for their efforts in getting us to the successful completion of the transaction having now received all regulatory approvals, including CIFIUS. We are looking forward to working together to capitalise on the significant growth opportunities ahead," John Lofton Holt, Executive Chairman of Alphawave.