TIDMAWE
RNS Number : 2974U
Alphawave IP Group PLC
02 December 2021
Strategic Business Update
Acquisition of Precise-ITC and completion of major milestones
for China Product Partnership
LONDON, United Kingdom and TORONTO, Ontario, Canada Dec 2, 2021
- Alphawave IP (LN:AWE), a global leader in high-speed connectivity
for the world's technology infrastructure is pleased to announce
the acquisition of Precise-ITC and the completion of significant
milestones for the China Product Partnership ("CPP").
Key highlights
-- Alphawave IP has agreed to acquire Precise-ITC, Inc. an
emerging leader in the Ethernet and Optical Transport Network (OTN)
communications connectivity IP space.
-- Alphawave IP has also completed all CPP implementation
milestones and CPP, now incorporated as WiseWave Technology Co.,
Ltd ("WiseWave"), has been funded and will receive its first IP
delivery from Alphawave IP in December 2021, as planned. WiseWave
was founded as a Chinese semiconductor device company focused on
the mainland Chinese market.
-- In addition, Alphawave IP has completed the consolidation of
its VeriSilicon reseller relationship with WiseWave to provide one
interface to customers in China, in line with the plan communicated
at the time of Alphawave IP's IPO. This consolidation has no
material impact on the combined value of the WiseWave and
VeriSilicon transactions.
Acquisition of Precise-ITC
The acquisition of Precise-ITC will result in the addition of a
team of leading engineers focused on delivering a high-performance
Ethernet and OTN communications controller IP portfolio. This will
provide Alphawave's customers with an integrated IP bundle of
Alphawave IP and Precise-ITC technology that extends Alphawave IP's
leadership in the networking and data center markets. The combined
Alphawave IP and Precise-ITC IP solutions have already been
integrated and fabricated in silicon products for several of
Alphawave IP's Product IP customers. The acquisition is Alphawave
IP's first such transaction since the completion of its IPO in May
2021.
The cash consideration payable by Alphawave IP is up to US$25m
based on achievement of certain performance milestones, plus
customary stock-based retention incentives for the Precise-ITC
team. The transaction is expected to close in January 2022 and will
contribute revenue in 2022.
Tony Pialis, President and Chief Executive Officer of Alphawave
IP stated: "At our IPO we discussed team and technology acquisition
opportunities to further accelerate our growth and we are pleased
to announce our first acquisition. Precise-ITC has been a great
partner of Alphawave IP since 2019. They have built a high-end and
profitable business with an international customer base. Now as one
team, we will have an expanded and vertically integrated portfolio
of communications IPs to service the most advanced global customers
in the networking and data center space. These customers include
leading semiconductor companies and hyperscalers[1] that demand
high performance connectivity solutions in 4nm, 3nm and
beyond."
Silas Li, Founder and President of Precise-ITC stated: "Our
entire team is excited about the opportunity to join the Alphawave
IP team and grow our business by leveraging the resources and
technology of Alphawave IP. We have worked together since 2019 and
our individual pipelines for Q4 2021 and 2022 are strong. By
combining our capabilities, we will be able to accelerate both of
our businesses and expand our pipeline even further."
CPP update
Alphawave IP is also pleased to announce the completion of major
implementation milestones for CPP, which is now incorporated as
WiseWave Technology Co., Ltd. WiseWave has been funded by both
Alphawave IP and Beijing Wise Road Asset Management Co., Ltd ("Wise
Road") and is operational, with WiseWave's team now established in
China. WiseWave will receive its first deliveries of Alphawave IPs
in December and will immediately begin development of its first
communications semiconductor products.
In addition, as set out in Alphawave's IPO Prospectus, and as
approved by VeriSilicon shareholders in Q4 2021, through execution
of the VAR Variation Agreement ("VARVA"), Alphawave IP, VeriSilicon
and WiseWave have agreed to consolidate all Alphawave IP reselling
activities and product development activities within WiseWave. This
will provide a single interface for Alphawave IP in China while
still supporting the successful multi-year partnership with
VeriSilicon, which has already delivered several additional
licenses as announced in Alphawave's Q3 2021 trading update.
Execution of the VARVA has no material impact on the combined value
of the WiseWave and VeriSilicon transactions, and these bookings
are expected to be recognised as revenue over the coming years as
contractual milestones are met. Alphawave IP expects to recognise
its first revenues from WiseWave and VeriSilicon in H2 2021.
John Lofton Holt, Executive Chairman of Alphawave IP stated: "We
are pleased to have worked successfully with the Wise Road and
WiseWave teams to execute against these important operational
milestones. WiseWave has built a world-class team and we look
forward to supporting this team as it builds its first
communications semiconductor products with our IPs in 2022 and
2023."
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 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
Related Party Disclosures
Precise-ITC is not a related party of Alphawave IP. All related
parties in this press release have been previously disclosed.
###
Trademarks
All registered trademarks and other trademarks belong to their
respective owners. PCI-SIG, PCI Express and PCIe are trademarks or
registered trademarks of PCI-SIG.
Contact Information:
Alphawave IP Group John Lofton Holt, Executive ir@awaveip.com
plc Chairman +44 (0) 20 7717 5877
Daniel Aharoni, CFO
------------------- ---------------------------- -----------------------------
Brunswick Group Simone Selzer alphawave@brunswickgroup.com
Sarah West +44 (0) 20 7404 5959
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[1] Hyperscalers are technology companies that provide cloud,
networking and internet services at scale. Examples of hyperscalers
include Google, Facebook, Alibaba, Microsoft, and Amazon
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