Filtronic PLC
23 August 2000
FILTRONIC PLC: $US 20M ACQUISITION OF SIGTEK INC.
Purchase of US Digital Signal Processing ('DSP') software group
Innovative earn-out based on engineering skills
Filtronic plc, a leading global player supplying the mobile infrastructure
markets, whose customers include Nokia, Motorola, Ericsson, Philips and
Lucent, announces the acquisition of Sigtek Inc, based in Maryland, USA for a
maximum consideration of $20m. Sigtek is a leader in the field of high speed
digital signal processing ('DSP') software development, and of its 30
employees, 23 are professional engineers. The consideration, payable over a 4
year period is to be satisfied by the issue of up to 1,140,901 new Filtronic
shares with an initial payment of 267,427 new shares at 1177p per share. In
an innovative agreement, the deferred consideration element is subject to
earn-out criteria dependent upon both the number and quality of the
engineers retained by Sigtek over a four year period.
High speed DSP is integral to the development of software radio which is
applicable to most of the business areas currently addressed by Filtronic.
The technology has only recently been developed in response to the need to
progress high frequency signals in real time which has been driven by
requirements for third generation ('3G') mobile phones and optical fibre
networks.
Several projects will be established during the coming months to utilise this
additional DSP capability, and it is applicable both in base station and
mobile phone applications. In base stations the high frequency
transmit/receiver modules are likely to include up and down conversion
capability and inevitably interface with the remainder of the system at
digital level. For high performance 3G handsets, digital techniques will be
developed to minimise distortion and maximise radiation in the most efficient
manner whilst providing enhanced receive capability with dynamic diversity.
Both of the above will be necessary to utilise the 2MBs high data rate
standard and can only be accomplished using high speed DSP.
Initially, Sigtek Inc will form part of Filtronic's Broadband Access group
with immediate applications within the broadband two-way cable systems in the
USA, where digital/radio frequency converters are necessary to provide the 70
million subscribers with high speed services. These products are customised
for installation in OEM platforms and the Filtronic/Sigtek combination is well
positioned to develop these products with their current US OEM customer base.
Higher bandwidth wireless systems will use complex digital modulation schemes
and again the Filtronic/Sigtek combination will provide the total expertise
necessary to address this rapidly expanding market.
Commenting on the acquisition, Professor David Rhodes, Chairman of Filtronic,
said: 'Sigtek brings to Filtronic the expertise to develop real-time software
for high frequency DSP. This acquisition, together with the new compound
semiconductor products to be produced at our Newton Aycliffe facility will
place Filtronic in a strong position to meet the challenges in our rapidly
expanding markets.'
Enquiries:
Professor David Rhodes
Professor Chris Snowden
Chris Schofield
Filtronic plc Tel: 01274 530622
Paul Vann
Binns & Co Tel: 020 7786 9600
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