MACOM Technology Solutions Holdings, Inc., a supplier of semiconductor products, has announced its acquisition with radio frequency business of Wolfspeed, Inc. This move marks a step for MACOM, enhancing its position in the semiconductor industry. The agreement solidifies MACOM’s commitment to expanding its portfolio and capabilities within the RF technology sector.
The RF Business includes a portfolio of Gallium Nitride on Silicon Carbide products used in high performance RF and microwave applications. The business services a broad customer base of aerospace, defense, industrial and telecommunications customers and most recently generated annualised revenues of approximately $150 million (€138.79 million). The acquisition is expected to be accretive to MACOM’s non-GAAP earnings.
“We are excited to acquire Wolfspeed’s RF Business and look forward to welcoming its employees to MACOM,” states Stephen G. Daly, president and chief executive officer, MACOM. “The RF team’s engineering capabilities, technology and products are a perfect fit with MACOM and our strategy.”
The acquisition includes a 100mm GaN wafer fabrication facility in Research Triangle Park, North Carolina with operations conveying to MACOM approximately two years following the closing and Wolfspeed’s relocation of certain production equipment. The acquisition also includes design teams and associated product development assets in Arizona, California and North Carolina, as well as back-end production capabilities in California and Malaysia. In addition, MACOM will be assigned or licensed an intellectual property portfolio including over 1,400 patents associated with the RF Business.
The RF Business will be acquired for $125 million (€115.66 million), including $75 million (€69.39 million) cash paid at closing and $50 million (€46.26 million) of MACOM common stock issued with certain restrictions. A workforce of approximately 280 employees is expected to join MACOM at closing, with additional employees joining when the RTP Fab conveys.
Closing of the transaction is subject to the expiration of a waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other closing conditions and is expected to occur in the second half of calendar year 2023.
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