BEND, Ore.--Advanced Power Technology Inc. here announced plans to acquire GHz Technology Inc., a Santa Clara, Calif.-based supplier of radio-frequency ICs, for $29.1 million in stock and cash.
Advanced Power Technology said the acquisition is part of its ongoing strategy to expand its product and technology portfolio in RF power devices. Eleven-year-old GHz has 75 employees and makes a variety of products used in wireless communications, radar, and avionic systems.
"By combining the two RF product lines APT will have comprehensive RF silicon technology coverage from 1 MHz to 3.5 GHz," said Patrick Sireta, chief executive officer of Oregan-based APT. "Together, we believe we will increase our critical mass, expand our technology base and strengthen our ability to serve our customers."
Under the terms of the purchase agreement, APT will issue 1.48 million shares of common stock and $13.3 million in exchange for the businesses and assets of GHz Technology, which will include $7.9 million in cash. Options and additional shares will also be part of the acquisition package, which based on Thursday's stock closing prices has a total value of $29.1 million, according to APT.
The acquisition is expected to be completed within the next 25 to 45 days. The transaction is expected to be accretive to APT's revenue per share and cash earnings per share in 2002 without the inclusion of synergies, said the Bend-based company.
GHz Technology's products are capable of switching frequencies ranging from 10 MHz to 3.5 GHz. APT said the acquisition will add key RF technology to its portfolio, enabling the company to extend its business into fast-growing higher frequency markets.
APT said GHz Technology's operations will continue to be managed by the company's president and CEO, Frank Schneider, who will report to Sireta once the purchase is completed.