Ericsson to acquire Microwave Power Devices

Ericsson and Microwave Power Devices have signed a final agreement whereby Ericsson will acquire MPD at a price of USD 8.70 per MPD share for a total amount of approximately 100 million USD.

Within ten business days, Ericsson will commence a cash tender offer for all of the outstanding MPD shares. The Board of Directors of MPD has unanimously approved the agreement. The transaction is conditioned upon termination of the antitrust waiting periods in the US and other countries, as well as on other customary conditions. The holders of over 50 percent of MPD’s shares have agreed to tender their shares into the Ericsson tender offer.

MPD designs and manufactures radio frequency and microwave linear high power amplifier products. Its strong competence in this area is important for the development of products for 3G.

Radio base stations in mobile systems are going through a continuous development. One of the major technology steps is the introduction of Multi Carrier Power Amplifiers (MCPA), as opposed to traditional combiners. These amplifiers are vital building blocks in the third generation mobile radio systems.

More at www.ericsson.com