Benzinga | Nov 22, 2021 03:01PM EST

AmpliTech To Acquire Spectrum Semiconductor Materials

AmpliTech Group Inc (NASDAQ:AMPG) agreed to acquire the assets and operations of Spectrum Semiconductor Materials Inc for $8 million in cash, plus $1.5 million in escrow and 0.19 million shares. Spectrum is a specialty distributor of semiconductor components based in San Jose, California.

* Spectrum provides a powerful distribution platform in the U.S., Europe, and Asia for AmpliTech's new line of monolithic microwave integrated circuit (MMIC) chip designs.

* Spectrum has been building its radio frequency (RF) focused semiconductor revenue base.

* "This transaction will allow us to more than triple our current annual revenue run rate, while also being immediately accretive to our bottom line," AmpliTech CEO Fawad Maqbool said.

* Spectrum is on track to achieve 2021 revenue of $10 million - $11 million, representing double-digit growth year-on-year, with a pre-tax net margin of 25%.

* AmpliTech expects to close the deal within FY21.

* AmpliTech held $28 million in cash and equivalents as of September 30.

* Price Action: AMPG shares traded lower by 8.44% at $4.12 on the last check Monday.