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| REMEC Completes Acquisition of Paradigm |
SAN DIEGO--(BUSINESS WIRE)--Nov. 10, 2003--REMEC Inc. (Nasdaq: REMC) today announced that it has completed the acquisition of Paradigm Wireless Systems Inc., currently the largest private domestic merchant supplier of RF power amplifiers to the telecommunications infrastructure industry, in a stock-for-stock merger. Paradigm shareholders will receive 1.9 million shares of REMEC common stock. The board of directors of both companies unanimously approved the acquisition, which was valued at $20.957 million based on REMEC's stock trading at $11.03 per share at the time of the signing of the letter of intent on October 31, 2003. This acquisition will further strengthen REMEC's position as a global supplier of commercial wireless subsystem products. REMEC expects that this transaction will be profitable from the onset, based on gaining substantial operational synergies and reducing additional overhead costs. Paradigm currently has annualized revenues of $24 million. "Paradigm is a synergistic value acquisition that increases our market penetration and broadens our existing mid-to-high end product line with a strong low cost product offering," said Ron Ragland, REMEC's chairman and CEO. "Paradigm's capabilities feature fast design cycle time and low cost design skills while REMEC's strength in manufacturing operations will accelerate Paradigm's opportunities with their existing customers. The combination strengthens our business in Korea and opens the China market with several important PA programs." Ragland welcomes Ki Nam, Paradigm's CEO, and a talented group of key performers to the REMEC family. Nam will manage Business Development for the REMEC Commercial Group with specific emphasis initially on Korea and Asia. About REMEC REMEC provides design and manufacture of microwave and millimeter wave subsystems used in the transmission of voice, video and data traffic over wireless communications networks and provides advanced microwave subsystem solutions for defense and space electronics applications. REMEC is located at 3790 Via de la Valle, Del Mar, CA 92014. For more information, visit the company's Web site at http://www.remec.com or call 858-505-3713. Statements in this press release that are not historical are forward-looking statements, which involve known and unknown risks and uncertainties. Actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including, general and industry economic conditions, competition, development factors, operating costs and other risks and uncertainties that are detailed from time to time in our filings with the Securities and Exchange Commission. REMEC is a registered trademark of REMEC Inc. Other brand or product names are registered trademarks or trademarks of their respective holders. (C) REMEC Inc., 2003. All rights reserved.
CONTACT: SOURCE: REMEC Inc. |