Celeritek Strengthens CDMA/WLAN Focus with Acquisition of Tavanza
October 20, 2002...A key compound semi broadband communications component and subsystem supplier, Celeritek Inc. of Santa Clara California USA, that itself was being courted for acquisition (the offer from Anaran was rejected by Celeritek's board), is moving itself up the foodchain by announcing it will now do the acquiring and expanding. Celeritek has signed a definitive agreement to acquire Tavanza Inc., a privately held, fabless designer of power amplifier modules and components for cellular and wireless LAN products that was established in Sept. 2000, headquartered in Sunnyvale, California USA, and is already obviously geared for the Asian market. While terms of the agreement were not disclosed, Celeritek noted that the acquisition will not have a material impact on the Company's cash position. Rationale for the acquisition is that Tavanza's technology enables Celeritek to "better respond to the growing demand for high performance, power efficient, small volume, cost effective power amplifiers for handsets and WLAN products." Tavanza has already sampled CDMA power amplifiers to several Korean cell phone makers, and in September, Celeritek opened an office in Korea. "This acquisition brings together complementary strengths and technologies to support our strategy of broadening our product offering, expanding our customer base and continuing to invest in research and development," said Tamer Husseini, President and CEO of Celeritek who noted that Tavanza strength is in their development of cost effective packaging techniques that will allow Celeritek to achieve its goal of lowest cost producer of power amplifier modules. The acquisition has already been approved by the board of directors of each company and is subject to customary closing conditions, and will likely be completed in the fourth calendar quarter of 2002. News release. |
