Hittite Microwave Corp. has agreed to acquire most of the assets of Keragis Corp., a move that will expand its power amplifier product line and presence in military and commercial applications.
Terms of the deal were not disclosed. Keragis, of San Diego, is a privately held provider of high-power, wideband amplifiers, which are manufactured using both gallium arsenide and gallium nitride semiconductor technologies. Hittite, which is based in Chelmsford, Mass., makes chips, modules, subsystems, and instrumentation for demanding digital, RF, microwave, and millimeter-wave applications covering DC to 110 GHz. According to Hittite, the deal complements its product portfolio.
"Keragis' power amplifiers in combination with Hittite's semiconductor technologies, synthesizer and up/downconverter module portfolio will allow Hittite to expand its system content in both military and commercial applications that include electronic warfare, radar, communications, and test equipment," Rick Hess, president and chief executive of Hittite, wrote in a March 18 statement.
Analysts believe that by targeting military and commercial applications, Hittite can penetrate high-growth markets that are important to its long-term success.
Keragis’s GaN technology is also a key benefit since it “has the potential to be a substantial driver of growth in the years to come, especially in high-growth applications such as commercial and defense-related markets,” according to analyst Tore Svanberg, Stifel Nicolaus, San Francisco, in a report to investors. “Overall, we look for Hittite to leverage its deep heritage in high-performance RF, military, and microwave applications and to expand these new capabilities across its large customer base with value-added products in high growth areas.
Hittite’s latest transaction is not expected to have a material impact on its financials. The company reported quarterly revenue of $68.8 million, and net income of $15.6 million in its fourth quarter ended December 2013.