Cirtek unit buys tech manufacturer

Posted at 07/29/14 2:30 PM

MANILA, Philippines – A unit of semiconductor manufacturer Cirtek Holdings Philippines Corp. (CHPC) is acquiring tech products manufacturer REMEC Broadband Wireless International, Inc. (RBWI).

Laguna-based CHPC said its wholly-owned subsidiary Cirtek Electronics International Corporation (CEIC) will acquire RBWI for about $10 million to $12 million.

“The final amount of such consideration will be determined based on the net asset value of RBWI as of the closing date of the transaction, with such determination to be agreed to by the parties,” Cirtek said in a statement.

The deal is expected to be closed by Wednesday, July 30.

CHPC is funding the acquisition through internal funds and proceeds from a corporate notes issuance.

REMEC and its remaining subsidiaries will continue to design and market telecommunications products globally under the "REMEC" brand.

REMEC will also enter into a manufacturing agreement with Cirtek to make REMEC products under a long term contract manufacturing relationship.

"REMEC's proven and robust manufacturing and product capabilities, and high level of engineering and technical expertise in the wireless communication industry, complement Cirtek's current competencies in customer- and application-specific IC packages,” said CHPC chairman Jerry Liu.

CHPC chief financial officer Anthony Buyawe, meanwhile, said the acquisition expands Cirtek's manufacturing capacity and capability, adds to Cirtek's customer base, and further increases its presence in high-growth end markets such as telecommunication, automotive, medical, satellite communication, aerospace and defense.

RBWI is involved in manufacturing products for industrial and consumer applications, such as RF/microwave, emerging products of OEMs and ODMs for commercial, industrial, military and telecommunications applications, and providing related repair services.