Alphawave IP Group PLC Completion of Acquisition of OpenFive (8521X)
01 September 2022 - 4:02PM
UK Regulatory
TIDMAWE
RNS Number : 8521X
Alphawave IP Group PLC
01 September 2022
Alphawave IP Announces Completion of Acquisition of OpenFive
Combined company will accelerate Alphawave's leadership, product
offerings and customer base while driving greater scale and revenue
growth from an expanded total addressable market
LONDON, United Kingdom and; TORONTO, Ontario, CANADA September
1, 2022 - Alphawave IP Group plc ("Alphawave" or "Company")
(LN:AWE), a global leader in high-speed connectivity for the
world's technology infrastructure is pleased to announce that it
has completed the acquisition of OpenFive.
Tony Pialis, President and Chief Executive Officer of Alphawave
said: "Today represents an important milestone for Alphawave. This
acquisition accelerates our ambition to become a leading pure-play
provider of connectivity technology, covering silicon IP and custom
silicon solutions like chiplets. We are delighted to welcome the
talented team from OpenFive, as well as their customers and
partners. The combination adds scale and expands our expertise into
custom silicon. The combined company is well positioned to
capitalise on the growth opportunities we see in the digital
infrastructure markets, and we are really excited about the long
term prospects for growth."
John Lofton Holt, Executive Chairman of Alphawave said: "We are
delighted to welcome the OpenFive team to Alphawave and I would
like to thank both teams for their efforts in getting us to the
successful completion of the transaction having now received all
regulatory approvals, including CIFIUS. We are looking forward to
working together to capitalise on the significant growth
opportunities ahead."
Key highlights
Alphawave has completed the acquisition of OpenFive bringing
OpenFive's high-speed connectivity system-on-chip (SoC) IP
portfolio and a proven team based in India and Silicon Valley, and
other global locations, that has been delivering custom silicon
solutions for over 15 years. The acquisition significantly
increases Alphawave's customer base globally from 28 [1] currently
to over 80, especially in North America, including a top two
semiconductor memory supplier, a top three high performance
computing (HPC) server manufacturer, a leading automated tester
equipment manufacturer, and mission critical high-speed
communications and industrial equipment manufacturers.
-- This acquisition nearly doubles the number of
connectivity-focused IPs available to Alphawave customers from 80
to over 155 and will provide customers with a one-stop-shop for
their bundled connectivity needs in the most advanced technologies
at 5nm, 4nm, 3nm and beyond. This will include an expanded
die-to-die connectivity portfolio that will accelerate chiplet
delivery capabilities to existing and new customers.
-- OpenFive's proven silicon development team enables Alphawave
to offer leading edge data centre and networking custom silicon
solutions as well as enhancing its chiplet design capabilities.
This accelerates Alphawave's strategic goal to scale revenues by
monetising its leading connectivity IP not only through IP
licensing but advanced custom silicon design and delivery.
-- The combination of Alphawave's leading high-speed
connectivity with OpenFive's IP portfolio is expected to generate
material revenue synergies through bundling of IP and integrated IP
sub-systems as well as leveraging the two companies' respective
strengths to win complex custom silicon design wins at leading edge
process nodes.
-- As previously communicated, the transaction will be
immediately EPS accretive to Alphawave. Forecast FY 2023 revenue
for the combined group is anticipated to reach between US$325m to
US$360m with a path to a yearly revenue run rate of over US$500m in
2024. 2023 adjusted EBITDA margins for the group are expected to be
between 32-36% with 2025 adjusted EBITDA margins between 40-45% as
revenues exceed US$500m.
Closing Details - Cash Consideration Only with a Strong Balance
Sheet Post-Closing
The total consideration paid by Alphawave for completion was
US$210m in cash plus customary working capital adjustments. As was
previously reported, no debt was raised to finance the
transaction.
###
Trademarks
All registered trademarks and other trademarks belong to their
respective owners.
Contact Information:
Alphawave IP Group John Lofton Holt, Executive ir@awaveip.com
plc Chairman +44 (0) 20 7717 5877
Jose Cano, Global Head
of Investor Relations
--------------------- ------------------------------- ---------------------------
Brunswick Group Simone Selzer alphawave@brunswickgroup.com
Sarah West +44 (0) 20 7404 5959
------------------- ----------------------------- -------------------------------
Gravitate PR Lisette Paras alphawave@gravitatepr.com
Wynton Yu +1 415 420 8420
===================== =============================== ===========================
About Alphawave IP Group plc (LSE:AWE)
Faced with the exponential growth of data, Alphawave IP's
technology services a critical need: enabling data to travel
faster, more reliably and with higher performance at lower power.
Alphawave IP is a global leader in high-speed connectivity for the
world's technology infrastructure. Our IP solutions therefore meet
the needs of global tier-one customers in data centers, compute,
networking, AI, 5G, autonomous vehicles, and storage. Founded in
Toronto, Canada in 2017, by an expert technical team with a proven
track record in licensing semiconductor IP, our mission is to focus
on the hardest-to-solve connectivity challenges. To find out more
about Alphawave IP, visit: awaveip.com
[1] As at 30 June 2022
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