TriQuint Semiconductor and WJ Communications have entered into a definitive agreement for TriQuint to acquire WJ Communications. Under the terms of the agreement, TriQuint will acquire by merger all outstanding shares of WJ Communications for $1.00 (USD) per share, which implies a purchase price of about $72 million. The acquisition is expected to be neutral to TriQuint's earnings during fiscal 2008 and accretive thereafter. The agreement has already been approved by the board of directors of both companies and is expected to close within about three months. Both companies bring strengths for their integrated-circuit (IC) and module products in different market segments, with TriQuint strong in handset and infrastructure applications in mobile communications and Global Positioning System (GPS) receivers while WJ Communications enjoys robust markets in cable-television (CATV), radio-frequency-identification (RFID), and wireless and cable broadband infrastructure systems.
According to Ralph Quinsey, chief executive officer (CEO) of TriQuint Semiconductor, WJ's solid reputation in these market areas is a wonderful complement to TriQuint's strengths in design, manufacturing, and customer support. WJ's technical expertise combined with the financial strength and stability of TriQuint will provide both innovative products and security of supply to the networks infrastructure customer base." Upon closing, it is anticipated that Bruce Diamond, the CEO of WJ Communications, will continue with the combined organization.