WJ Communications to Acquire Telenexus, Inc.
Acquisition to Expand WJ Communications' Industry-Leading RFID Product Portfolio and Adds Significant Baseband Processing Capability
biz.yahoo.com
Thursday January 20, 7:48 am ET
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 20, 2005-- WJ Communications, Inc. (Nasdaq:WJCI - News), a leading designer and supplier of high-performance RF semiconductors and Radio Frequency Identification (RFID) Reader products, today announced a definitive agreement to acquire privately held Telenexus, Inc. of Richardson, TX. Telenexus is a RFID company that develops high quality, innovative RFID products for a broad range of industries and markets. Under the terms of the agreement, WJ Communications will pay approximately $10 million in cash and stock in exchange for all Telenexus stock. Additionally, if the Telenexus operations achieve certain revenue over an 18-month period, Telenexus shareholders will receive further consideration of up to $5 million in a combination of stock and cash. The merger with Telenexus is subject to customary closing conditions and is expected to close in approximately fifteen days.
Telenexus uses its Radio Frequency (RF) and Digital Signal Processing (DSP) intellectual property and design expertise to provide modules and complete integrated reader solutions for RFID applications. Telenexus has been actively involved in designing EPC compliant readers and is a member of EPCglobal, Inc. Telenexus' customers include Texas Instruments, LG Industrial Systems, EDS and NASA among others.
"Upon completion of this transaction, Telenexus' products will expand the breadth of WJ's RFID product offerings and its technology will enhance the development of future generations of RFID products," said Dr. Mike Farese, Ph.D, Chief Executive Officer and President of WJ Communications. "Telenexus brings to WJ a team of industry experts with over ten years of RFID experience. As part of the acquisition, we expect that WJ's RFID capabilities will be augmented by Telenexus' portal and portable RFID reader technology and expertise, including baseband processing, antenna design, firmware, and software expertise. Telenexus' capabilities, when combined with WJ's semiconductor leadership and RF engineering expertise, are expected to further enhance our ability to continue to shrink the size and cost of RFID readers. We also believe that the DSP capability acquired via this merger, in addition to its direct application in RFID, might have potential application in WJ's future cellular and general transceiver designs."
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