14th Mar 2022 14:52
Alphawave IP Group PLC - London-based designs and licences chip technology - Buys OpenFive business unit from SiFive Inc for USD210 million in cash. Notes that the transaction is expected to finish in the second half of this year, pending customary regulatory approvals.
OpenFive is a solution-centric and processor agnostic custom silicon business. It has been working with Alphawave for over a decade.
Alphawave says that the acquisition is immediately earnings per share accretive. It expects 2023 revenue to increase to between USD325 million and USD360 million with a run rate to over USD500 million in 2024.
Adds that adjusted earnings before interest, tax, depreciation and amortization margins are expected to grow to between 32% to 36% with 2025 adjusted Ebitda margins between 40% to 45%.
"This acquisition is important for Alphawave, but also for our industry, as we will now be the leading pure-play provider of connectivity solutions in the world in whatever form-factor our customers need it - as silicon IP or in custom silicon solutions like chiplets," Chief Executive Tony Pialis states.
"As we look to the future, we expect to develop and acquire additional capabilities to further expand and accelerate our leadership in connectivity. In our core business, the first quarter of 2022 is very strong and the outlook for 2022 is also strong. We expect this transaction to meaningfully impact revenue in H2 2022, pending regulatory approval of the transaction."
Current stock price: 150.74 pence, up 0.8% on Monday
12-month change: down 59%
By Abby Amoakuh; [email protected]
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