Endwave Acquires JCA from Bookham for $6 Million Cash
July 21, 2004...Reminiscent of JDS Uniphase and Nortel Networks before the first "bubble", Bookham Technology continues to reshuffle their now rather diverse optical communications holdings, and as a result, longtime compound semi industry specialists like Endwave, add to their focused offerings. Endwave, which has always targeted the defense related applications for MMICs since their original Endgate/TRW days, has just acquired from Bookham JCA Technology, a wholly owned Bookham subsidiary. JCA became a part of Bookham when Bookham acquired New Focus in March of this year. As best we can trace back, (most of the old links are dead now, except ours) New Focus originally acquired JCA in January of 2001 when it was located in Camarillo, California and paid $363 million for it, which means Endwave got quite a bargain. Price paid by Endwave for the 20 year veteran RF company, which is now located in San Jose, California, was $6 million in cash. JCA's customer base is spread across multiple defense contractors and subcontractors, with no customer representing greater than approximately 15% of revenues in recent quarters.
"This acquisition is strategically important to Endwave in building our defense and homeland security business base, and is complementary to our existing portfolio of RF module products for these markets," said John Mikulsky, Senior Vice President of Sales, Marketing, and Technology for Endwave. "In addition, we expect the acquisition of JCA to broaden our product offerings and strengthen our ties to familiar customers such as Raytheon, Northrop Grumman, Lockheed, L3 and Boeing." Defending Bookham's move, Steve Turley, Chief Commercial Officer at Bookham added, "This transaction follows our strategy to focus on our core optical business. We believe that the combination of Endwave and JCA will strengthen both businesses, allowing them to focus on their core activities and create additional value for their customers." According to Ms. Julianne Biagini, CFO for Endwave, revenues from JCA are expected to add approximately $1.0 to $2.0 million to Endwave's revenues per quarter after full integration of the business unit, which is expected to occur by the end of 2004. Over the next two quarters, the JCA business unit and employees will be relocated from their current facility in San Jose, California, to Endwave's facilities in Sunnyvale, California (those are neighboring SiValley towns) and Diamond Springs, which is in Southern California. Company news release
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