Denver, CO, 09/22/2014 (Stocksntrade) – TriQuint Semiconductor (NASDAQ:TQNT)’s merger with rival RF Micro Devices, Inc. (NASDAQ:RFMD) will result into a new entity named Qorvo Inc. The transaction valued at $1.6 billion is termed ‘merger of equals.’ The companies expect the deal to be completed during 2H14, subject to regulatory approvals and customary closing conditions. The “combined entity” ‘Qorvo’ will bring under a common platform all the critical RF (Radio Frequency) components like power amplifiers, power management integrated circuits, switch-based products, antenna control solutions and premium filters. The merger of equals will create an unmatched market leader with diversified product portfolio.
RF Micro Devices, Inc. (NASDAQ:RFMD)’s merger of equals with TriQuint Semiconductor (NASDAQ:TQNT) will offer synergistic benefits to both the companies and increase profitability of the “combined entity” named Qorvo Inc. through economies of scale, better bargaining power, sharing of manufacturing expertise, adjustment of personnel expenses and R&D costs. Qorvo will be able to accelerate translation of R&D advancements into large scale production. The transaction is estimated to achieve $75 million of cost savings each in the first and second year of its operations. Bargaining power against Samsung Electronics and Apple Inc. (NASDAQ:AAPL) and projected increase in global smartphone users provides a huge revenue potential to Qorvo.
Regions Financial Corp. (NYSE:RF) agreed to provide a new three-year ‘secured’ revolving credit facility to a leading engineering and automation services provider ENGlobal Corp. (NASDAQ:ENG), which the company plans to use for ongoing working capital requirement and other general corporate purposes. The Regions facility will allow ENGlobal to borrow up to $10 million based on a borrowing base formula. The Regions facility will replace ENGlobal’s prior facility with PNC Bank, N.A. that was undrawn at the time of closing. ENGlobal CFO, Mark Hess expressed that the new facility with Regions Financial will maintain the company’s borrowing capacity and liquidity.