Alpha Industries and Conexant Systems have signed a definitive agreement that will combine Conexant’s wireless business with Alpha to create a pure-play world radio frequency and complete semiconductor system solutions for mobile communications applications company.
The combined company will be valued at approximately $3 billion and under the terms of the agreement, Conexant will spin off its wireless business, including its GaAs wafer fabrication facility located in Newbury Park, Calif., to be followed immediately by a merger of this business with Alpha. Upon completion of the merger, the new company will purchase Conexant’s semiconductor assembly, module manufacturing and test facility, located in Mexicali, Mexico, for $150 million in cash.
Success in today’s wireless semiconductor industry increasingly demands a comprehensive portfolio of technology and products. This merger of two highly complementary wireless businesses will create the world’s pure-play leader in mobile communications semiconductors, with the industry’s broadest technology capability and most complete product offering, said to the media, Alpha’s president and CEO, David Aldrich, who will fill the position as CEO in the new company.
For RF systems, this portfolio will include combination switch and filter products, multi-chip power-amplifier modules, and highly integrated transmit and receive devices for all major air-interface standards, Mr Aldrich continued. For complete handset systems, the combined company will deliver the world’s most comprehensive 2.5G GSM/GPRS solution, including the complete radio as well as all baseband processing, protocol stack and user interface software, plus complete reference designs and development platforms. For infrastructure applications, we are excited about the opportunity to leverage Conexant’s integrated RF product and technology capabilities across Alpha’s existing strong channel relationships and broad customer engagements.