Electronics Production | September 05, 2006
Filtronic, Powerwave revise terms of acquisition
Powerwave Technologies, Inc and Filtronic plc has announced that they have revised the terms of their previously announced transaction whereby Powerwave would acquire the majority of Filtronic's Wireless Infrastructure division business.
The amended terms consist of a combination of US$185 million in cash and 17.7 million newly issued shares of Powerwave common stock. Previously, the companies had announced on June 12, 2006 that they had signed a definitive agreement for Powerwave to acquire the majority of Filtronic's Wireless Infrastructure division business for a combination of US$150 million in cash and 20.7 million newly issued shares of Powerwave common stock. The specific product lines included in this proposed transaction comprise transmit/receive filters, integrated remote radio heads and power amplifier products, all for use in commercial wireless infrastructure base station equipment (the "Wireless Infrastructure business"). The proposed acquisition does not include point to point radio backhaul equipment, as well as Filtronic's other divisions, of Compound Semiconductors and Defence Electronics. The board of directors of both Powerwave and Filtronic have approved the revised agreement. The transaction is subject to the approval of Filtronic's shareholders. The board of Filtronic expects to post a circular putting this proposal to shareholders shortly. Subject to shareholders having approved the proposal, the transaction is expected to be completed in the September/October timeframe.