TriQuint completes acquisition of Agere's opto business

3 January 2003 -- TriQuint Semiconductor has completed the acquisition of a substantial portion of Agere Systems' optoelectronics business for USD40m.

Jan 3rd, 2003

3 January 2003 -- Hillsboro, Oregon-based communications component supplier TriQuint Semiconductor Inc says that it has completed the acquisition of a substantial portion of Agere Systems' optoelectronics business for USD40m 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. It does not include Agere's business providing optoelectronics components for CATV systems based in California.

For Agere's fiscal year to end September 2002 the business TriQuint acquired had revenue of about USD198m. 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 of USD50-75m for calendar year 2003 and is projecting that it will be accretive to earnings by Q4/2003.

As part of the transaction, about 340 Agere staff will join TriQuint, including about 215 in Pennsylvania and 125 in Matamoros, Mexico.

"TriQuint has been involved in the design and production of integrated circuits for optical networks for many years," said Ralph G Quinsey, president and CEO of TriQuint. "Combining TriQuint with the Agere optoelectronics business makes us one of the world's leading suppliers of optical modules and components. The consolidation of the operations and the restructured workforce will greatly reduce our costs compared to Agere's previous experience and puts us in a position for growth and profitability as the market recovers."

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. Most of these components will be manufactured in Agere's facility in Breinigsville, Pennsylvania, which TriQuint will acquire following the transition period. TriQuint will also operate the back-end assembly and test operations at a leased facility in Matamoros, Mexico.

TriQuint already has manufacturing facilities in Oregon, Texas, and Florida, a production plant in Costa Rica, and design centres in New England, Germany and Taiwan.

www.triquint.com

More in Earnings Statements