Alpha, Conexant Agree To Merge
Alpha Industries Inc. and Conexant Systems Inc. on Tuesday announced plans to merge, creating a $3 billion business that makes semiconductors for next generation wireless devices.
David Aldrich, Alpha president and chief executive officer, will be CEO of the new company and Dwight W. Decker, Conexant chairman and CEO, will be chairman of the board of directors. The company will maintain offices in Woburn Mass. and Newport Beach, Calif. and will have about 4,000 employees.
Under the terms of the agreement, Conexant will spin off its wireless business, which will merge immediately with Alpha. Upon completion of the merger, the new company will purchase Conexants semiconductor manufacturing and test facility in Mexicalli, Mexico, for $150 million in cash.
Customers of the combined company will include Nokia Corp., Motorola Corp., Sony/Ericsson and Samsung Corp.
The merger is expected to be finalized in the second quarter of 2002.