LONDON Ė Passives to power supplies giant Murata Manufacturing Co. Ltd. (Kyoto, Japan) is set to acquire NASDAQ-listed RF Monolithics Inc. (Dallas, Texas) in an all cash transaction worth about $22 million that is due to close in the third quarter of 2012.
The deal is being done through wholly-owned subsidiary Murata Electronics North America Inc., which has signed a definitive agreement to acquire all the outstanding shares in RF Monolithics for $1.78 per share, an 80 percent premium over the stock price closing price on Thursday, April 12.
The deal overs outstanding shares, debt and transaction costs. With 10.98 million shares outstanding that represents a cost of $19.54 million and RF Monolithics has $2.9 million of long-term debt according to its most recent 10-Q filing with the Securities and Exchange Commission.
Founded in 1979, RF Monolithics is manufacturers and vendor of short-range radio components, RF modules and boxed radios for a range of industrial, commercial and consumer applications including machine-to-machine communications. The company made a net income of $76,000 on total sales of $8.4 million in the first quarter of its 2012 financial year, which ended Nov. 30, 2011.
"RFM's proven success in developing business in the healthcare, energy and industrial markets compliments Murata's growth strategy," said David Kirk, CEO of Murata Electronics North America, in a statement.
Farlin Halsey, president and CEO of RF Monolithics, said: "We believe that the transaction with Murata Electronics North America offers a substantial premium to our stockholders. There is a natural fit between our two companies and we believe it was a significant factor in our outside directors' ability to attain a favorable price for our stockholders."
In October 2011, Murata announced it had agreed to buy VTI Technologies Oy (Vantaa, Finland) for about 20 billion yen (about 190 million euro or $260 million) in cash.
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