WJ Communications, manufacturer of RF semiconductor and multichip modules (MCMs), has completed its previously announced acquisition of the infrastructure business and associated assets of privately-held EiC Corp.of Fremont, Calif. late last month.
“We are delighted to have completed this acquisition and look forward to fully integrating EiC's strong technology and talented staff into our operations,” said Michael Farese, chief executive officer and president of WJ Communications. “The addition of EiC's products and technology provide a great complement to our RFIC capabilities which will enable us to better serve our current customers and expand into new opportunities in the wireless infrastructure market.”
The consideration paid to EiC by WJ Communications at closing, including deposits into escrow, consisted of $10 million in cash and 737,000 shares of WJCI's Common Stock. Additionally, as previously announced, if the EiC operations achieve certain revenue and margin targets over a 24-month period, EiC will receive further compensation of as much as $14 million in stock and cash. If the targets are achieved in full and EiC is entitled to receive the entire escrow deposit, then the total transaction value will be approximately $26.4 million.
As part of this acquisition, WJ Communications has acquired rights to the following assets from EiC. These include its leading line of RFICs for wireless infrastructure, IPs and patents, certain raw materials and all of the infrastructure business assets including high reliability 5 V, 12 V and 28 V HBT semiconductor processes.
“The acquisition of EiC's infrastructure business and assets by WJ allows EiC to focus our remaining resources on our handset or terminal semiconductor power amplifier business while assuring our customers a bright future with a highly respected leader in the infrastructure semiconductor market,” said Jerry Curtis, president of EiC Corp. EiC's infrastructure products lines will continue to be sold under existing part numbers and supported by WJ.