MANILA, Philippines – Cirtek Holdings Philippines Corporation is buying Quintel, a Silicon Valley tech firm engaged in antenna solutions, for $100 million, giving the publicly-listed firm an additional revenue stream.
In a statement, Cirtek announced the signing of a definitive agreement with Trillium International Funds, a shareholder representative of Quintel, for 100% acquisition of the Silicon Valley tech firm.
"Upon closing, the transaction will immediately give [Cirtek] a significant presence in the large and rapidly growing base station antenna market, estimated to be more than $14 billion by 2020," the listed company said.
Cirtek and Trillium International Funds have been shareholders in Quintel since 2007.
The two firms' board of directors have approved the transaction, which is expected to close on Monday, July 31, subject to customary closing conditions.
Cirtek plans to fund the transaction through debt financing.
Quintel is a leading innovator of spectrum and space-efficient base station antennas for wireless networks. Its major customers include two of the top 5 telecom carriers in North America.
For Cirtek chairman Jerry Liu, "Quintel's cutting edge research and development as well as product capabilities significantly add to and complement Cirtek's growing portfolio in wireless communication, and is aligned with our business focus on high-growth market segments."
"Further, being the strategic manufacturing partner of Quintel products places us in a unique situation to achieve significant synergies through value engineering, research and development collaboration, as well as cost reduction, resulting in high-quality, reliable and cost-competitive products," said Cirtek vice chairman and president Roberto Juanchito Dispo.
Quintel designs, develops, and delivers antenna solutions that promise mobile operators increased efficiency.
Founded in 1997, Trillium Group is a New York-based private equity firm managing early stage venture capital and growth equity funds.
"Quintel is extremely pleased to be part of the Cirtek team which immediately provides us with the horizontal growth opportunities as well as vertical integration with a highly capable manufacturing group to enhance our current product portfolio and improve our overall efficiencies," Quintel president David Piazza said.
Credit Suisse serves as the exclusive financial advisor, while Livnah Associates serves as the legal advisor to Cirtek.
Filipino entrepreneur and Silicon Valley pioneer Diosdado Banatao is adviser to Cirtek's board. Since January 2016, the listed technology firm has been gearing up for acquisitions locally and overseas. – Rappler.com