Santa Ana-based Powerwave Technologies Inc. said Monday it plans to buy a majority of British-based Filtronic PLC’s wireless infrastructure unit for about $340 million in cash and stock.
Powerwave said it plans to pay $150 million in cash and 20.7 million in shares to fund the deal.
Both boards have approved the deal. It still must be OK’d by Filtronic shareholders. The deal is expected to close by the end of September.
The acquisition is set to expand Powerwave’s signal filtering, remote radio heads and power amplifier product lineups.
Filtronic will own about 13% of Powerwave, based on the conversion of convertible bonds, under the deal.
Powerwave expects to save $10 million a year in manufacturing, research and development, and other cost-cutting after the Filtronic unit is integrated.
The company said it should easily post more than $1.4 billion in sales in 2007 following the acquisition. Powerwave had $825 million in revenue last year.
Powerwave also expects the deal to add $10.6 million to $13.6 million in profit in 2007. The company had income of $50.6 million last year.
Powerwave, a maker of amplifiers and other gear for wireless phone networks, has been on a buying spree during the past couple of years.
Its acquisitions include last year’s $150 million buy of Del Mar-based Remec Inc.’s wireless unit.
Shares of Powerwave were up 5% in afternoon trading Monday.
