What’s in a name? Looking at the name chosen for the new company created out of a merger of RFMD and TriQuint, the answer is quite a lot. The name for this new entity is “NewCo,” which underscores that the goal is to give this company a unique identity beyond the respectable RFMD and TriQuint names. Although it’s unclear exactly what new path this company may take beyond markets and technology developments currently served by both companies, some information has been released so far.
Obviously, both firms hope that the merger will bolster their position in the mobile-device, network-infrastructure, and aerospace/defense markets. The combined portfolio offerings will provide higher-performance mobile solutions through power amplifiers (PAs), power-management integrated circuits (PMICs), antenna-control systems, switch-based products, and premium filters. With these products, NewCo is hoping to enable better devices, higher data throughput, next-generation base stations, optical communications, and the Internet of Things (IoT) for both carriers and consumers. The company also plans on boosting gallium-nitride (GaN) solutions into further markets and applications.
Both boards of directors unanimously approved the merger of equals. The new company will be headed by a shared leadership team. TriQuint’s CEO, Ralph Quinsey, will serve as non-executive chairman while RFMD’s CEO, Bob Bruggeworth, will serve as CEO. Former shareholders of both companies will each own approximately 50% of the new company post-merger.
The all-stock transaction led to combined revenue of $2 billion. The company is expected to achieve at least $150 million in cost synergies. The transaction is scheduled to close in the second half of this year following approval by all shareholders, the receipt of regulatory approvals, and other typical closing conditions.