News & Updates

Cirtek, Remec seal $10-M purchase seal

LAGUNA-BASED semiconductor manufacturer Cirtek Holdings Philippines Corp. said it has sealed its deal with Remec Broadband Wireless Holdings for the purchase of the latter’s manufacturing facilities.

Cirtek said it is buying the facilities for $10 million to $12 million, but the final price will be determined based on Remec’s net asset value.

“Remec and its remaining subsidiaries will continue to design and market its top-of-class telecommunications products globally under the ‘Remec’ brand and, as part of this sale, it will enter into a manufacturing agreement with Cirtek to manufacture Remec products under a long-term contract manufacturing relationship,” the company said in its disclosure to the Philippine Stock Exchange.

Both companies’ board of directors have approved the transaction, which will be closed on July 30.

“Remec’s proven and robust manufacturing and product capabilities, and high level of engineering and technical expertise in the wireless communication industry, complement Cirtek’s current competencies in customer-and application-specific [integrated circuit] packages,” Cirtek Chairman Jerry Liu said in a statement. “Combined, we are now well-positioned to provide more comprehensive and sophisticated solutions to our existing customers and to the addressable market,” Liu said.

Remec has over 18 years of experience in producing high-quality niche printed circuit board assembly and box-build in low/medium/high volume and high mix products for industrial and consumer applications, such as radio frequency/microwave, emerging products of original equipment and original design manufacturers for commercial, industrial, military and telecommunications applications, and providing related repair services.

“This will allow us a more comprehensive integration and synergy for both our engineering and product capabilities, and we are very excited about the opportunities that we foresee given current market trends,” Remec President Domingo Bonifacio said.

For the first three months of the year, Cirtek recorded a net income of $1.1 million, an increase of 8 percent compared with $1 million last year.

The company recorded consolidated revenue of $11.2 million for the period, an increase of 7 percent from $10.5 million for the same period in 2013. The growth was led by the strong sales performance of the company’s multichip, discrete and hermetics divisions, which grew by 31 percent, 23 percent and 35 percent, respectively.



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