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Cirtek buys tech manufacturing firm


LISTED Cirtek Holdings Corp. on Thursday said it is buying Remec Broadband Wireless International Inc., a local manufacturer of highly integrated technology products. The company said unit Cirtek Electronics International Corp. will be the vehicle for the said acquisition, seen to boost the company’s product and technology portfolio.

“The acquisition gives [the company] the ability to provide its customers vertically integrated solutions from component, module, to system level; boosts the presence of the company in the high-growth wireless communication space and enables it to accelerate its growth and profitability,” the company said in a disclosure to the Philippine Stock Exchange. Remec’s core capabilities include complete box build assembly and turnkey manufacturing solutions for radio frequency, microwave and millimeter-wave products used in the wireless industry, such as telecommunications, satellite, aerospace and defense, and automotive wireless devices, as well as offer unique radio frequency/microwave expertise and highly experienced and qualified management, engineering and technical support teams. Cirtek did not provide details on the cost of the said acquisition.

“Consideration [of the price is] to be finalized within 60 days from determination of seller’s net asset value at an agreed upon cut-off date,” it said. “The acquisition at the consolidated level will result in an increase in the balance sheet, higher sales and higher profitability for [Cirtek].”  For the first three months of the year, the company recorded a net income of $1.1 million, an increase of 8 percent from the $1 million recorded last year.

The company reported consolidated revenues of $11.2 million for the period, an increase of 7 percent from $10.5 million in 2013. The growth was led by the strong sales performance of its multichip, discrete and hermetics divisions, which grew by 31 percent, 23 percent and 35 percent, respectively.  Cirtek is an independent complete solution provider for subcontract manufacturing of semiconductor devices. Its offices and manufacturing operations are based in Laguna Technopark in Biñan, Laguna.

VG Cabuag

 

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