AVX Corporation (NYSE: AVX) today announced that it has signed a definitive agreement to acquire Ethertronics Inc., a privately held manufacturer of passive and active antenna systems. Ethertronics is a leader in advanced antenna system technology and manufactures antenna products for wireless applications such as mobile phones, Wi-Fi, defense, aerospace, medical, and Internet of Things.
John Sarvis, President and Chief Executive Officer of AVX Corporation, stated, "The addition of Ethertronics is an exciting opportunity for AVX as we expand our extensive electronic product offering into a new arena. Ethertronics is a premier brand that we are proud to add to the AVX family. The combination of AVX and Ethertronics offers exciting growth potential for the years ahead."
In accordance with the agreement, AVX will acquire Ethertronics for a consideration of $142.0 million in cash and assumption of $8.0 million of net debt, subject to normal working capital adjustments at closing. The transaction is subject to regulatory approvals and other conditions that are customary for transactions of this type.
Ethertronics designs, manufactures and markets passive and active IMD antenna systems. IMD antennas are highly efficient antennas that are insensitive to changes in ground planes or local interference. The unique design allows flexibility to tune for multiple frequencies in confined spaces and for active tuning for radiation pattern coverage as well as frequency. Ethertronics supplies patented passive and active tunable antennas for virtually all wireless connectivity applications and, with technologies such as integrated LDS structures, Ethertronics is a major supplier of cellphone and laptop antenna systems. With over 200 patents, Ethertronics operates facilities in 6 locations located in China, South Korea, Vietnam, France, Taiwan, and the USA, comprising R&D, manufacturing and sales office locations. In the financial year ended December 31, 2017, Ethertronics generated approximately $90 million of revenue. Ethertronics employs approximately 700 people, 120 of whom are in product development, reflecting a strong R&D focus. DBO Partners acted as financial advisor to Ethertronics and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP provided legal counsel to Ethertronics.
AVX Corporation is a leading worldwide manufacturer and supplier of a broad line of passive electronic components and interconnect products. AVX's components can be found in products manufactured in a broad range of industries worldwide. AVX is headquartered in Fountain Inn, SC. AVX can be found on the Internet at http://www.avx.com.