RF Micro Devices, Inc. and TriQuint Semiconductor, Inc. reported that they have completed their merger of equals to form RF solution company, Qorvo™. Qorvo is began trading on the NASDAQ Global Stock Market Friday, January 2, 2015. The merger, which is intended to qualify as a tax-free reorganization, will give TriQuint shareholders 1.675 shares of Qorvo and RFMD shareholders 1 share of Qorvo for each TriQuint or RFMD share held. A one-for-four reverse stock split was effected at the market close Friday. Former shareholders of RFMD and TriQuint will each own approximately 50 percent of Qorvo.
The merger is expected to achieve at least $150 million in cost synergies, which includes $75 million in annualized synergies exiting the first year after closing and an additional $75 million exiting the second year. The transaction is expected to be accretive to non-GAAP EPS in the first full fiscal year following the merger.
Qorvo President and CEO Bob Bruggeworth said, “Qorvo brings under one roof all the critical RF building blocks needed to simplify design, reduce size and conserve power, while improving system performance across mobile, infrastructure, and aerospace and defense applications. Our goal is to build the most valuable company in our space, and the global Qorvo team is eager to deliver the value our stakeholders expect.”
Qorvo’s new 10-member board of directors includes four independent directors from each of the RFMD and TriQuint boards. The Board includes Qorvo president and CEO Bob Bruggeworth and former TriQuint CEO Ralph Quinsey, who will serve as non-executive chairman.