Dow Jones Business News
Vari-L Co In Talks With Sirenza Microdevices
Tuesday October 8, 8:37 am ET
SUNNYVALE, Calif. -(Dow Jones)- Sirenza Microdevices Inc. (NasdaqNM:SMDI - News) is in discussions to acquire Vari-L Co. (VARL) , which makes complementary radio frequency components using technologies common to existing and planned Sirenza products.
In a press release Tuesday, Sirenza said it has concurrently agreed to provide Denver-based Vari-L with a secured bridge loan facility of up to $5.3 million.
In a separate release, Vari-L said it plans to draw $1.3 million of that amount to retire a current loan facility with Wells Fargo and may draw additional funds to support general working capital requirements.
The loan facility allows for a portion of the principal amounts to be converted into about 19.9% of Vari-L fully diluted common shares under certain conditions, the companies said.
The proposed acquisition is subject to the completion of due diligence, the finalization of terms and structure, and other considerations.
In connection with the loan facility, Vari-L has agreed to negotiate a potential acquisition exclusivity with Sirenza through March 2003, subject to limited exceptions, and has granted Sirenza the right of first refusal on competing acquisition offers.
Shares of Sirenza closed unchanged Monday at $1.36, in Nasdaq trading.
Shares of Vari-L closed Monday at 50 cents on the over-the-counter Bulletin Board.
-Jenny Park; Dow Jones Newswires; 201-938-5388 |
