initial public offerings (IPOs) trading on American exchanges

Wednesday, August 3, 2011

M/A-COM Tech files for a $230M IPO

M/A-COM Technology Solutions Holdings Inc., the Lowell, Mass - based maker of radio frequency chips, has filed for an initial public offering with an estimated value of $230 million. 

In the filing with the U.S. Securities and Exchange Commission, M/A-COM Technology said it was looking to trade on the Nasdaq market under the ticker symbol “MTSI.” Lead underwriters for the IPO are Barclays Capital, J.P. Morgan and Jefferies, with participation from Morgan Keegan, Raymond James, Needham & Co. LLC and Stifel Nicolaus Weisel.

The company noted in the filing it had 712 employees as of July 1, 2011. It also stated, however, that over the course of the last year M/A-COM Technology had done some restructuring, with layoffs “substantial in scope and disruptive to some of our historical operations.” The exact number of employees let go since last July was not disclosed in the filing.

M/A-COM Technology listed revenue of $260.3 million for fiscal year 2010 and $231.5 million and $186.1 million for the nine months ended July 1, 2011 and July 2, 2010, respectively.

In April, M/A-COM Technology purchased Optomai Inc. of California, bringing to M/A-COM semiconductor technology for next-generation 40 Gbps and 100 Gbps fiber-optic networks. At the time, the terms of the deal were not disclosed, but the IPO filing states M/A-COM Technology paid $1.8 million up front for Optomai, with an earn-out potential of an additional $16 million to be paid.

In April of 2009, M/A-COM Technology was purchased from its UK-based parent company Cobham PLC for a possible $90 million by John Ocampo, the owner of Gaas Labs LLC, a semiconductor private equity fund based in California. M/A-COM Technology was founded as Microwave Associates in 1950. Once Cobham bought the company from its then-parent Tyco Electronics Inc., the division was re-incorporated in September of 2008, when Cobham also bought M/A-COM’s defense and commercial businesses for a combined for $425 million.

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