Micronetics Acquires MICA Microwave, Inc.
June 05 2007 - 7:11PM
Business Wire
Micronetics, Inc. (NASDAQ:NOIZ) today announced that it has
acquired MICA Microwave, Inc. (MICA) pursuant to an Agreement of
Merger and Plan of Reorganization executed today with MICA.
Pursuant to the terms of the Agreement of Merger, MICA merged with
and into a wholly-owned subsidiary of Micronetics, and holders of
MICA common stock received a combination of cash and shares of
Micronetics common stock in a transaction valued at $5 million.
Micronetics will be utilizing $3.0 million of the proceeds from its
new term loan to finance the cash portion of the acquisition.
Established in 1984 by founder and President Frederick Mills, MICA
offers a comprehensive line of high performance RF/microwave mixers
and ferrite devices that will fit seamlessly into Micronetics�
product portfolio. As part of the agreement, Mr. Mills will
continue to lead MICA as it operates as a wholly owned subsidiary
of Micronetics from its Manteca, CA facility. David Robbins,
President and CEO of Micronetics, stated, "We are excited about the
growth opportunities at MICA especially in the IED jamming, point
to point radio, and space marketplaces. MICA�s high performance
mixers and ferrites strengthen Micronetics� ability to provide its
customers with complete microwave subsystems and system solutions.�
"MICA has invested heavily in technology for expanding markets,
most notably ferrites for broadband commercial communications,
mixers and ferrites for space applications and for IED jamming.
MICA�s revenue for its fiscal year ending October 31, 2006 was $5.6
million, with a global market breakdown of 30% commercial and 70%
defense. This acquisition will enable Micronetics to continue its
strategic goal of serving a balanced mix of commercial and defense
customers." "Both companies look forward to leveraging the others'
existing customer relationships. MICA�s existing relationships with
customers such as General Dynamics, Lockheed Martin, BAE, and
Boeing will provide access to sales channels to expand Micronetics
existing business within the commercial and defense marketplace. In
addition, Micronetics' extended history on programs for customers
such as Raytheon, Northrop Grumman, and L3 will provide new market
opportunities for MICA." MICA specializes in broadband mixers and
ferrites. Its products offer exceptional performance for systems
where spectral purity is important, including IED Jamming, TD-CDMA,
WiMAX, and COFDM. MICA also offers a range of mixers and ferrites
for other defense uses such as electronic warfare and radar. MICA
is currently displaying its products at the IEEE MTT-S
International Microwave Symposium in Honolulu, Hawaii, and can be
visited at booth no. 1106 from June 3rd-8th, 2007. Additional
information about MICA�s products and services can be found on
their website at www.mica-mw.com. Micronetics manufactures
microwave and radio frequency (RF) components and integrated
subassemblies used in a variety of defense, aerospace and
commercial applications. Micronetics also manufactures and designs
test equipment and components that test the strength, durability
and integrity of communication signals in communications equipment.
Micronetics serves a diverse customer base, including Aerosat,
Airspan, BAE Systems, Boeing, EADS, General Dynamics, Harris,
IPWireless, ITT, L-3 Communications, Lockheed Martin, Northrop
Grumman, Qualcomm, Raytheon, Teradyne, Tektronix, Thales and
UTStarcom. Additional information can be found on our website at
www.micronetics.com. Some of the statements contained in this news
release are forward-looking statements. The accuracy of these
statements cannot be guaranteed as they are subject to a variety of
risks, including but not limited to reductions in spending by
certain of our customers, our ability to operate and integrate
acquired companies, our ability to manage our growth, disruptions
in supply or production, increased levels of debt, our ability to
protect our proprietary information, future economic conditions in
our industry and generally, as well as other factors. The
information in this release should be reviewed in conjunction with
Micronetics' Annual Report on Form 10-KSB for its fiscal year ended
March 31, 2006, and subsequent quarterly reports on Form 10-QSB.
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