Macom to acquire the RF business of Wolfspeed for $125M

Macom (MTSI) has entered into a definitive agreement to acquire the radio frequency – RF – business of Wolfspeed (WOLF). The RF business services a customer base of aerospace, defense, industrial and telecommunications customers and most recently generated annualized revenues of approximately $150M. The acquisition is expected to be immediately accretive to Macom’s non-GAAP earnings. The acquisition includes a 100mm GaN wafer fabrication facility in Research Triangle Park, North Carolina 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 intellectual property portfolio including over 1,400 patents associated with the RF Business. The RF Business will be acquired for $125M, including $75M cash paid at closing and $50M 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. Closing of the transaction is expected to occur in the second half of 2023.