HAPPAUGE, N.Y.-Microwave Power Devices Inc., a manufacturer and seller of ultra linear power amplifiers and related subsystems, announced it has signed a letter of intent to purchase New Jersey-based Amplidyne Inc., which also manufactures and sells amplifier equipment.
Under the terms of the letter of intent, aggregate consideration for the purchase will be 1.15 million shares of MPDI common stock, which is valued at approximately $7.2 million based on the closing price on Nov. 30.
The transaction is subject to the approval of the board of directors and stockholders of both MPDI and Amplidyne, the execution of a definitive merger agreement and other customary conditions to closing. As such, the transaction is expected to be completed by April 1999.
“Both short and long-term benefits could be realized through significant opportunities from new wireless telecommunications OEM contracts,” said Devender S. Bains, president, chief executive officer and chairman of Amplidyne.
