Cirtek Holdings Philippines Corporation (CHPC) – the holding company of Cirtek Electronics Corp and Cirtek Electronics International Corp, collectively the Cirtek Group, – has acquired 100 per cent stake in New York-based antenna solutions firm Quintel for around $77 million.
The company made the deal with Trillium International I GP, a shareholder representative of Quintel Cayman Ltd.
CHPC disclosed it will fund the transaction through debt financing.
Credit Suisse served as exclusive financial advisor to CHPC, and Livnah Associates acted as legal advisor.
Stifel is exclusive financial advisor to Trillium International Funds and Quintel, and Nixon Peabody served as legal advisor.
Founded in 2007, Quintel designs, develops and delivers antenna solutions that help mobile operators to increase efficiency, enhance quality-of-service, slash costs and accelerate ROI.
Through its subsidiaries, CHPC is engaged in providing manufacturing solutions for value-added, highly integrated radio frequency microwave and millimeterwave technology products.
The listed holding firm disclosed the acquisition is consistent with the Cirtek Group’s positioning to compete in high-growth market segments such as wireless communication. It expects the exponential growth in mobile traffic will require more robust and efficient wireless infrastructure.
The base station antenna market is estimated to exceed $14 billion by 2020, according to CHPC.
It added Cirtek Group aims to expand its business portfolio vertically from OSAT, to becoming a complex OEM, to the development of its own products and brands, with a focus on high-growth industry segments, such as wireless communication and IOT.
The group believes that by moving up the value chain, it will be able to accelerate its revenue trajectory and improve profit margins.
CHPC chairman Jerry Liu said, Quintel’s R&D and product capabilities significantly add to and complement Cirtek’s growing portfolio in wireless communication, and is aligned with the company’s business focus on high-growth market segments.
“Being the strategic manufacturing partner of Quintel products places us in a unique situation to achieve significant synergies through value engineering, research and development collaboration as well as cost reduction, resulting in high-quality, reliable and cost-competitive products,” said CHPC vice chairman and president Roberto Juanchito Dispo.
Trillium International have been shareholders in Quintel since 2007.