Qorvo (QRVO) Augments RF Portfolio With Anokiwave Buyout
Qorvo Inc. QRVO recently inked an agreement to acquire Anokiwave for an undisclosed amount to augment its position in the market. The collaboration promises to expand Qorvo's addressable opportunities in the D&A (Defense & Aerospace), SATCOM (Satellite Communication) and 5G markets.
Based in Boston, MA, Anokiwave offers a wide range of complex, integrated solutions to its customers, ranging from the largest publicly traded companies to small start-ups all over the world in both commercial and military markets. The company specializes in mmW Si core chips, packaging design & simulation, mmW Silicon technology, phased array antenna integrated circuits (ICs) and System Architecture. Over the years, its innovative techniques and designs have proven to reduce critical time-to-market as well as development and production costs by more than 50%.
The Anokiwave team will unite with Qorvo’s High-Performance Analog segment to develop beamformers and IF-RF (Intermediate Frequency- Radiofrequency) solutions for defense phased array and AESA radar, electronic warfare, satellite communications and 5G applications. The synergies between Anokiwave's technologies and Qorvo's RF solutions are aimed to result in advanced system-in-package offerings, which combine multiple ICs into a single module, thus providing superior performance and efficiency for defense, aerospace and network infrastructure applications.
As demand for sophisticated communication systems in defense and aerospace sectors grows rapidly with 5G infrastructure, Qorvo’s intensified capabilities are expected to get them a bigger pie in the market with a likely increase in business deals.
Qorvo’s stock performance is expected to get a boost as it aims to invest in the intelligent, active array antenna space, promoting industrial growth, greater diversification and improved gross margins over time. As it operates on a global scale, the combined entity would benefit from a wider market reach characterized by rapid technological advancements and a high degree of innovation.
The stock has lost 1.1% over the past year compared with the industry’s decline of 11.9%.
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Qorvo currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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