RF Micro Devices Inc of Greensboro, NC, USA and fellow RF component maker TriQuint Semiconductor Inc of Hillsboro, OR, USA have completed their merger to form Qorvo Inc, a provider of what is claimed to be the industry’s broadest portfolio of core technologies and RF products for mobile, infrastructure and aerospace/defense applications. Following delisting of the stock of both RFMD and TriQuint, Qorvo began trading on the NASDAQ Global Stock Market at $69 per share.
“Qorvo brings under one roof all the critical RF building blocks needed to simplify design, reduce size and conserve power, while improving system performance across mobile, infrastructure, and aerospace & defense applications,” says Qorvo’s president & CEO Bob Bruggeworth. “Our goal is to build the most valuable company in our space.”
As well as more than 6000 staff, Qorvo has ISO9001-, ISO 14001- and ISO/TS 16949-certified manufacturing facilities, and is a DoD-accredited 'Trusted Source' (Category 1A) for gallium arsenide (GaAs), gallium nitride (GaN) and bulk acoustic wave (BAW) products and services.
As a result of the merger (which is intended to qualify as a tax-free reorganization), TriQuint shareholders receive 1.675 shares of Qorvo and RFMD shareholders receive 1 share of Qorvo for each TriQuint or RFMD share held, and a one-for-four reverse stock split was effected at closing of the merger on 1 January. Former shareholders of RFMD and TriQuint each own about 50% of Qorvo.
The merger is expected to achieve at least $150m in cost synergies ($75m in annualized synergies exiting the first year after closing plus an additional $75m exiting the second year). The transaction is expected to be accretive to non-GAAP earnings per share (EPS) in the first full fiscal year following the merger.
Qorvo’s new 10-member board of directors includes four independent directors from each of the RFMD and TriQuint boards: Daniel A. DiLeo, Jeffery R. Gardner, John R. Harding, Charles Scott Gibson, David H.Y. Ho, Roderick D. Nelson, Dr Walden C. Rhines, and Walter H. Wilkinson Jr. The board also includes Qorvo’s president & CEO Bob Bruggeworth and former TriQuint CEO Ralph Quinsey, who will serve as non-executive chairman.
