March 15, 2005 – Mimix Broadband Inc. and Celeritek Inc. jointly announced today they have entered into an asset purchase agreement pursuant to which Mimix will acquire substantially all of Celeritek’s assets relating to its gallium arsenide (GaAs) semiconductor components business for $2.8 million in cash.
Under the agreement, Mimix will also assume approximately $6 million in liabilities of Celeritek. Assets excluded from the transaction include Celeritek’s cash, cash-equivalents and certain other non-operating assets.
Celeritek’s GaAs semiconductor components business designs and manufactures radio frequency integrated circuits (RFICs), low noise amplifiers, gain blocks and power amplifier modules, using GaAs based device technology. These products are used in a variety of commercial and defense applications. Following the transaction, Mimix intends to maintain the business in Santa Clara, CA.
The closing of the asset sale is subject to approval by Celeritek’s shareholders and other closing conditions. The $2.8 million purchase price is subject to adjustment based on Celeritek’s working capital at the time of closing. $300,000 of the purchase price will be held in escrow for six months to satisfy any indemnification claims by Mimix.