REG - Alphawave IP Group - Completion of Acquisition of OpenFive

Alphawave IPAnnouncement

01/09/2022 07:00

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RNS Number : 8521X  Alphawave IP Group PLC  01 September 2022

 

 

Alphawave IP Announces Completion of Acquisition of OpenFive

 

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, United Kingdom and; TORONTO, Ontario, CANADA September 1, 2022
- 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 28 1  (#_ftn1)
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.

 

·    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              ir@awaveip.com

                                Jose Cano, Global Head of Investor Relations      +44 (0) 20 7717 5877
 Brunswick Group  Simone Selzer                          alphawave@brunswickgroup.com

                  Sarah West                             +44 (0) 20 7404 5959
 Gravitate PR                   Lisette Paras                                     alphawave@gravitatepr.com

                                Wynton Yu                                         +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 (http://www.awaveip.com/)

 1  (#_ftnref1) As at 30 June 2022

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