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RF Micro, TriQuint Semi combining in $1.56B deal

Published on NewsOK Modified: February 24, 2014 at 10:28 am •  Published: February 24, 2014

GREENSBORO, N.C. (AP) — Chip maker RF Micro Devices Inc. and TriQuint Semiconductor Inc. are combining in an all-stock deal valued at about $1.56 billion.

The deal announced Monday represents an implied price of $9.73 for each TriQuint share. This is a 5 percent premium to the company's Friday closing price of $9.23.

The two companies said that the combination will create new growth opportunities in the mobile devices, network infrastructure and aerospace/defense markets. They added that the deal will also help create mobile devices with dramatically higher capabilities to handle data.

The shareholders of each company will own about 50 percent of the shares in the new company. RF Micro CEO Bob Bruggeworth will serve as CEO of the new company while TriQuint CEO Ralph Quinsey will serve as non-executive chairman.

The new company will have a new name which has not yet been chosen.

TriQuint makes products for communications, defense and aerospace companies. The Hillsboro, Ore.-based company currently has 160.6 million outstanding shares, according to FactSet. RF Micro is based in Greensboro, N.C.

In December activist investor Starboard Value LP, TriQuint's second-biggest shareholder, announced that it would nominate its own slate of directors to TriQuint's board. Starboard had been trying to persuade TriQuint to restructure or sell its mobile power amplifier business, which makes devices used in cellphones and tablets.

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