ANADIGICS, Inc. (Nasdaq: ANAD) announced it has acquired Telcom Devices Corporation (Camarillo, California), a manufacturer of indium phosphide based photodiodes for the telecommunication and data communication markets. This transaction will be accounted for as a purchase and is valued at $28 million, plus certain earn-out payments tied to future financial performance targets, for a potential total consideration of up to $45 million. The earn-out payments, if the financial performance is achieved, would be payable in the second quarter of 2002.
"This transaction will utilize the purchase method of accounting and is expected to be both cash flow positive and accretive to our calendar year 2001 earnings excluding any amortization," said Tom Shields, Senior Vice President and Chief Financial Officer of ANADIGICS. "We expect Telcom Devices to exceed an annualized revenue run rate of approximately $10 million in 2001."
The acquisition of Telcom Devices is a step in ANADIGICS' fiber strategy to provide high performance, chip set solutions by adding long wavelength PIN photodiodes and unique packaging capabilities to its fiber product line.
Telcom Devices' portfolio of products includes "digital" photodiodes for systems operating at speeds up to 10 Gb/s at wavelengths from 1300 nanometers to 1550 nanometers, laser backside facet monitors for fiber transmitters, "analog" photodiodes for optical nodes in cable systems, micro-machined lens for detector arrays, and large area detectors for instrumentation.
About ANADIGICS:
ANADIGICS (NASDAQ: ANAD) designs and manufactures radio frequency integrated circuit (RFIC) solutions for growing broadband and wireless communications markets. For more information, visit www.anadigics.com.