CIRTEK Holdings Philippines Corp., a listed electronics and wireless broadband manufacturing firm, is acquiring 100 percent of US-based Quintel Cayman Ltd. for $77 million or P3.85 billion.
Cirtek said over the weekend it will sign today (Monday) a definitive agreement with Trillium International Funds, as shareholder and representative of Quintel, for the acquisition of the latter, subject to customary closing conditions.
Trillium International Funds has been a stockholder of Quintel since 2007.
“Upon closing, the transaction will immediately give Cirtek a significant presence in the large and rapidly growing base station antenna market, estimated to be more than $14 billion by 2020,” Cirtek said.
The transaction will be funded through debt financing.
“Quintel’s cutting edge R&D and product capabilities significantly add to and complement Cirtek’s growing portfolio in wireless communication, and is aligned with our business focus on high-growth market segments,” Cirtek Chairman Jerry Liu said.
“Further, being the strategic manufacturing partner of Quintel products places us in a unique situation to achieve significant synergies through value engineering, research and development collaboration as well as cost reduction, resulting in high-quality, reliable and cost-competitive products,” Cirtek Vice Chairman and President Roberto Juanchito Dispo added.
On the other hand, Trillium International said Quintel is pleased to be part of the Cirtek team, “which immediately provides us with the horizontal growth opportunities as well as vertical integration with a highly capable manufacturing group to enhance our current product portfolio and improve our overall efficiencies.”
“Additionally, Quintel’s R&D innovations combined with Cirtek’s world-class microwave and millimeter wave product and manufacturing know-how will enable Quintel’s 5G product portfolio for tomorrow’s high-growth wireless communication market,” it added.
Credit Suisse is serving as exclusive financial advisor to Cirtek, while Livnah Associates is the legal advisor.
Stifel is serving as exclusive financial advisor to Trillium International Funds and Quintel, and Nixon Peabody as legal advisor.
Quintel is a US-based antenna solutions provider that helps mobile operators increase efficiency, enhance quality-of-service, slash costs and accelerate return-on-investment.