Jan 2, 2003 – Hillsboro, OR – TriQuint Semiconductor Inc. has completed the acquisition of a substantial portion of the Agere Systems optoelectronics business for $40 million in cash.
The transaction includes the products, technology, and some facilities related to Agere’s optoelectronics business, which includes active and passive components, amplifiers, transceivers, transponders, and MEMS.
The transaction does not include Agere’s business providing optoelectronics components for CATV systems based in California.
For Agere’s fiscal year ended Sept. 30, 2002, the business TriQuint acquired had revenue of approximately $198 million. Agere announced in August 2002 it was seeking a buyer for all or parts of this business, and exiting the optoelectronics business as part of its corporate restructuring. TriQuint estimates this business will have revenue somewhere between $50 and $75 million for CY03 and is projecting that it will be accretive to earnings by 4Q03.
As part of the transaction, approximately 340 Agere employees will join TriQuint including approximately 215 in Pennsylvania and approximately 125 in Matamoros, Mexico.
Through a transitional manufacturing agreement, Agere will supply components for TriQuint for a short period following the transaction closing to ensure seamless service to customers. The majority of these components will be manufactured in Agere’s Breinigsville, PA, facility which TriQuint will acquire following the transition period.
TriQuint will also operate the backend assembly and test operations at a leased facility in Matamoros, Mexico.