MACOM agrees to acquire the RF Business of Wolfspeed

MACOM agrees to acquire the RF Business of Wolfspeed

Business news |
By Jean-Pierre Joosting

MACOM Technology Solutions Holdings, Inc., a leading supplier of semiconductor products, has announced that it has entered into a definitive agreement to acquire the RF Business of Wolfspeed, Inc.

The RF Business includes a portfolio of GaN on Silicon Carbide products used in high performance RF and microwave applications. The business services a broad customer base of leading aerospace, defense, industrial and telecommunications customers and most recently generated annualized revenues of approximately $150 million. The acquisition is expected to be immediately accretive to MACOM’s non-GAAP earnings.

“The RF team’s engineering capabilities, technology and products are a perfect fit with MACOM and our strategy,” stated Stephen G. Daly, President and Chief Executive Officer, MACOM.

The acquisition includes a 100mm GaN wafer fabrication facility in Research Triangle Park, North Carolina (the “RTP Fab”) 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 a robust intellectual property portfolio including over 1,400 patents associated with the RF Business.

The RF Business will be acquired for $125 million, including $75 million cash paid at closing and $50 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.

“Given the significant growth we’ve seen in automotive, industrial and renewable energy markets, we believe this is the right time to further focus on scaling our power device and materials businesses to meet this accelerated demand,” said Wolfspeed President and CEO Gregg Lowe. “This transaction also represents a tremendous opportunity for our RF team to grow and operate at scale, leveraging MACOM’s diverse customer base, RF engineering leadership and operational efficiencies.”

Wolfspeed’s RF technology and innovation engine drives a strong product development pipeline, with deep domain expertise supporting a competitive GaN on silicon carbide product portfolio optimized for next generation telecommunications infrastructure, military and other commercial applications.

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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