Cirtek Holdings acquires local tech company

MANILA, Philippines - Laguna-based semiconductor firm Cirtek Holdings Philippines Corp. is expanding its product and technology portfolio through a $12-million acquisition of an integrated technology products company.

In a disclosure  to the local bourse, Cirtek said wholly-owned subsidiary Cirtek Electronics International Corp. signed a share purchase deal with Remec Broadband Wireless Holdings, Inc. for a 100-percent stake in Remec Broadband Wireless International Inc.

The indicative transaction value is pegged at between $10- to $12-million. The final acquisition price would be determined in the next 60 days.

The acquisition expands Cirtek’s product and technology portfolio while enhancing the manufacturing capacity and capability, the listed company said.

It would also give Cirtek “the ability to provide its customers vertically integrated solutions from component, module, to system level,” Cirtek added.

Remec Broadband is a Philippine manufacturer of value added, highly integrated technology products.

The company’s core capabilities include complete “box build” turnkey manufacturing solutions for redo frequency, microwave and millimeter wave products used in the wireless industry such as telecommunication, satellite, aerospace and defense, and automotive wireless devices.

Remec Broadband also has highly-experienced and qualified management, engineering and technical support teams, Cirtek said.

Cirtek said the deal would boost its presence in the high-growth wireless communication space as part of accelerating growth and improving profitability.

For this year, Cirtek’s core business is forecast to grow between eight to 10 percent in 2014 due to an industry-wide improvement and new customers.

Revenue from accretive business like new products, new projects and potential acquisitions, would contribute an additional five to eight percent of additional revenue in 2014, it added.

In 2013, consolidated revenues of Cirtek rose eight percent to $44 million from $40.6 million, while earnings gained seven percent to $4.7 million from $4.4 million a year ago.

Cirtek is an independent complete solution provider for subcontract manufacturing of semiconductor devices with 29 years of experience in the assembly and testing segment.

It provides turnkey solutions that include package design and development, wafer probing, wafer back grinding, assembly and packaging, final testing of semiconductor devices, and delivery and shipment to its customers’ end-users.