TRW Inc. said last week it will merge its subsidiary, TRW Milliwave Inc., with Sunnyvale, Calif.-based broadband equipment manufacturer Endgate Corp. to create a new company called Endwave Corp.
“Endwave’s products will provide the cost-effective wireless solutions customers are demanding for the expansion of e-business,” said Edward Keible, president, chief executive officer and director of Endgate, who also will become Endwave’s president and CEO.
The new company will supply broadband access equipment, including specialized antennas, transceivers and outdoor units, which are units that transmit and receive radio signals and serve as the engines of broadband wireless Internet access systems and cellular backhaul, TRW said.
TRW, better known for its advanced technology products for the automotive industry, also manufactures transceiver modules employing gallium arsenide millimeter wave monolithic circuits, which will “fit perfectly with Endgate’s products,” said Timothy H. Hannemann, TRW executive vice president and general manager for its space and electronics group.
TRW said Endwave eventually will be spun off as a separate company, but that won’t occur until TRW sees the opportunity and has a need for additional capital.
Analysts said this possibly could occur in the second half of this year or the first half of next year.
Upon announcing the merger last Wednesday, shares of TRW jumped $5.25 to $53.25. At RCR press time, TRW’s shares were trading at $55.19, down 56 cents from the previous day.
Upon closing of the merger, Endwave will be owned half each by TRW and Endgate shareholders.
Both TRW and Endgate shareholders will contribute cash to Endwave, which will be used to support Endwave’s growth, the companies said.
Endwave will be headquartered in Sunnyvale, and maintain design and manufacturing facilities in Sunnyvale, Santa Clara and Diamond Springs, Calif.
