Combined company will accelerate
Alphawave's leadership, product offerings and customer base while
driving greater scale and revenue growth from an expanded total
addressable market
LONDON and TORONTO, Sept. 1,
2022 /PRNewswire/ -- Alphawave IP Group plc
("Alphawave" or "Company") (LN:AWE), a global leader in high-speed
connectivity for the world's technology infrastructure is pleased
to announce that it has completed the acquisition of
OpenFive.
Tony Pialis, President and
Chief Executive Officer of Alphawave said: "Today represents an
important milestone for Alphawave. This acquisition accelerates our
ambition to become a leading pure-play provider of connectivity
technology, covering silicon IP and custom silicon solutions like
chiplets. We are delighted to welcome the talented team from
OpenFive, as well as their customers and partners. The combination
adds scale and expands our expertise into custom silicon. The
combined company is well positioned to capitalise on the growth
opportunities we see in the digital infrastructure markets, and we
are really excited about the long term prospects for growth."
John Lofton Holt, Executive
Chairman of Alphawave said: "We are delighted to welcome
the OpenFive team to Alphawave and I would like to thank both teams
for their efforts in getting us to the successful completion of the
transaction having now received all regulatory approvals, including
CIFIUS. We are looking forward to working together to capitalise on
the significant growth opportunities ahead."
Key highlights
Alphawave has completed the acquisition of OpenFive bringing
OpenFive's high-speed connectivity system-on-chip (SoC) IP
portfolio and a proven team based in India and Silicon Valley, and other global
locations, that has been delivering custom silicon solutions for
over 15 years. The acquisition significantly increases
Alphawave's customer base globally from 281 currently to
over 80, especially in North
America, including a top two semiconductor memory supplier,
a top three high performance computing (HPC) server manufacturer, a
leading automated tester equipment manufacturer, and mission
critical high-speed communications and industrial equipment
manufacturers.
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1 As at 30
June 2022
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- This acquisition nearly doubles the number of
connectivity-focused IPs available to Alphawave customers from 80
to over 155 and will provide customers with a one-stop-shop for
their bundled connectivity needs in the most advanced technologies
at 5nm, 4nm, 3nm and beyond. This will include an expanded
die-to-die connectivity portfolio that will accelerate chiplet
delivery capabilities to existing and new customers.
- OpenFive's proven silicon development team enables Alphawave to
offer leading edge data centre and networking custom silicon
solutions as well as enhancing its chiplet design
capabilities. This accelerates Alphawave's strategic goal to
scale revenues by monetising its leading connectivity IP not only
through IP licensing but advanced custom silicon design and
delivery.
- The combination of Alphawave's leading high-speed connectivity
with OpenFive's IP portfolio is expected to generate material
revenue synergies through bundling of IP and integrated IP
sub-systems as well as leveraging the two companies' respective
strengths to win complex custom silicon design wins at leading edge
process nodes.
- As previously communicated, the transaction will be immediately
EPS accretive to Alphawave. Forecast FY 2023 revenue for the
combined group is anticipated to reach between US$325m to US$360m
with a path to a yearly revenue run rate of over US$500m in 2024. 2023 adjusted EBITDA margins for
the group are expected to be between 32-36% with 2025 adjusted
EBITDA margins between 40-45% as revenues exceed US$500m.
Closing Details – Cash Consideration Only with a Strong
Balance Sheet Post-Closing
The total consideration paid by Alphawave for completion was
US$210m in cash plus customary
working capital adjustments. As was previously reported, no
debt was raised to finance the transaction.
Trademarks
All registered trademarks and other trademarks belong to their
respective owners.
Contact Information:
Alphawave IP Group
plc
|
John Lofton Holt,
Executive Chairman
Jose Cano, Global Head
of Investor Relations
|
ir@awaveip.com
+44 (0) 20 7717
5877
|
Brunswick
Group
|
Simone
Selzer
Sarah West
|
alphawave@brunswickgroup.com
+44 (0) 20 7404
5959
|
Gravitate
PR
|
Lisette
Paras
Wynton Yu
|
alphawave@gravitatepr.com
+1 415 420
8420
|
About Alphawave IP Group plc (LSE:AWE)
Faced
with the exponential growth of data, Alphawave IP's technology
services a critical need: enabling data to travel faster, more
reliably and with higher performance at lower power. Alphawave IP
is a global leader in high-speed connectivity for the world's
technology infrastructure. Our IP solutions therefore meet the
needs of global tier-one customers in data centers, compute,
networking, AI, 5G, autonomous vehicles, and storage. Founded in
Toronto, Canada in 2017, by an
expert technical team with a proven track record in licensing
semiconductor IP, our mission is to focus on the hardest-to-solve
connectivity challenges. To find out more about Alphawave IP,
visit: awaveip.com
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