October 29, 2001 – Plano, TX – Microtune, a provider of integrated radio frequency silicon and systems solutions, has entered into a definitive agreement to acquire privately held Transilica Inc., San Diego, CA, a developer of system-on-chip products for short-range wireless applications
Under the terms of the agreement, 19.99% of Microtune’s outstanding shares will be issued in exchange for all of the common stock, preferred stock, and stock options of Transilica. The consummation of the acquisition, which is expected to occur in November, is subject to a number of conditions, including obtaining required third-party consents.
“The Transilica acquisition is a significant investment in our future,” said Douglas J. Bartek, chairman and CEO of Microtune. “The deal is projected to be accretive in Q4, 2002. It will not affect Microtune’s internal projections for break-even in the back half of 2002, and while it does require some cash during the ramp-up phase, Microtune will not need to access capital markets for additional funding for this acquisition. We expect the revenues of the combined companies to be in the $120M range for 2002, an increase of 40% from existing analysts estimates and approximately double the 2001 revenues of Microtune.”