SAN FRANCISCO— RF Micro Devices Inc. (RFMD) said Monday (Nov. 5) it signed a definitive agreement to acquire RF and mixed-signal IC vendor Amalfi Semiconductor Inc. in a cash deal worth about $47.5 million.
Amalfi Semiconductor (Los Gatos, Calif.) specializes in RF and mixed-signal chips for the entry-level smartphone market. RFMD (Greensboro, N.C.) said to would accelerate market adoption of Amalfi's ICs by combining Amalfi's product portfolio and proprietary RF CMOS and mixed-signal expertise with RFMD's customer relationships, product portfolio, in-house manufacturing scale and global supply chain.
"Amalfi's proprietary RF and mixed-signal expertise in RF CMOS are a great fit for RFMD and a strong addition to our long-term technology strategy," said Bob Bruggeworth, president and CEO of RFMD, in a statement. "RFMD gives Amalfi the global presence, market credibility, manufacturing scale and blue—chip customer access to take their business to the next phase of growth."
Under the terms of the deal, RFMD will acquire Amalfi with cash on hand for total consideration of about $47.5 million, net of cash received, RFMD said. The firm said it expects to achieve immediate product and cost synergies and anticipates that transaction will be accretive to RFMD's financial statements within two quarters.
Amalfi, founded in 2003, has obtained at least $76 million in venture capital funding, including $20 million announced earlier this year from Battery Ventures, DCM and Globespan Capital Partners.
"The addition of Amalfi's RF CMOS PA technology with RFMD's market leadership and significant resources is a powerful combination, said Mark Foley, CEO and president of Amalfi. "We expect the acquisition will accelerate the delivery of new disruptive RF CMOS power amplifiers to the cost-driven entry-level smartphone market."