PR97604

LONDON and TORONTO, Sept. 1, 2022 /PRNewswire=KYODO JBN/ --

-- Combined company will accelerate Alphawave's leadership, product offerings

and customer base while driving greater scale and revenue growth from an

expanded total addressable market

Alphawave IP Group plc ("Alphawave" or "Company") (LN:AWE), a global leader in

high-speed connectivity for the world's technology infrastructure is pleased to

announce that it has completed the acquisition of OpenFive.

Photo -

https://mma.prnewswire.com/media/1888243/Alphawave_IP_Group_Plc_Alphawave_IP_Announces_Completion_of_Acqu.jpg

Tony Pialis, President and Chief Executive Officer of Alphawave said: "Today

represents an important milestone for Alphawave. This acquisition accelerates

our ambition to become a leading pure-play provider of connectivity technology,

covering silicon IP and custom silicon solutions like chiplets. We are

delighted to welcome the talented team from OpenFive, as well as their

customers and partners. The combination adds scale and expands our expertise

into custom silicon. The combined company is well positioned to capitalise on

the growth opportunities we see in the digital infrastructure markets, and we

are really excited about the long term prospects for growth."

John Lofton Holt, Executive Chairman of Alphawave said: "We are delighted to

welcome the OpenFive team to Alphawave and I would like to thank both teams for

their efforts in getting us to the successful completion of the transaction

having now received all regulatory approvals, including CIFIUS. We are looking

forward to working together to capitalise on the significant growth

opportunities ahead."

Key highlights

Alphawave has completed the acquisition of OpenFive bringing OpenFive's

high-speed connectivity system-on-chip (SoC) IP portfolio and a proven team

based in India and Silicon Valley, and other global locations, that has been

delivering custom silicon solutions for over 15 years.  The acquisition

significantly increases Alphawave's customer base globally from 281 currently

to over 80, especially in North America, including a top two semiconductor

memory supplier, a top three high performance computing (HPC) server

manufacturer, a leading automated tester equipment manufacturer, and mission

critical high-speed communications and industrial equipment manufacturers.

(1) As at 30 June 2022

-- This acquisition nearly doubles the number of connectivity-focused IPs

available to Alphawave customers from 80 to over 155 and will provide customers

with a one-stop-shop for their bundled connectivity needs in the most advanced

technologies at 5nm, 4nm, 3nm and beyond.  This will include an expanded

die-to-die connectivity portfolio that will accelerate chiplet delivery

capabilities to existing and new customers.

-- OpenFive's proven silicon development team enables Alphawave to offer

leading edge data centre and networking custom silicon solutions as well as

enhancing its chiplet design capabilities.  This accelerates Alphawave's

strategic goal to scale revenues by monetising its leading connectivity IP not

only through IP licensing but advanced custom silicon design and delivery.

-- The combination of Alphawave's leading high-speed connectivity with

OpenFive's IP portfolio is expected to generate material revenue synergies

through bundling of IP and integrated IP sub-systems as well as leveraging the

two companies' respective strengths to win complex custom silicon design wins

at leading edge process nodes.  

-- As previously communicated, the transaction will be immediately EPS

accretive to Alphawave. Forecast FY 2023 revenue for the combined group is

anticipated to reach between US$325m to US$360m with a path to a yearly revenue

run rate of over US$500m in 2024. 2023 adjusted EBITDA margins for the group

are expected to be between 32-36% with 2025 adjusted EBITDA margins between

40-45% as revenues exceed US$500m.

Closing Details – Cash Consideration Only with a Strong Balance Sheet

Post-Closing

The total consideration paid by Alphawave for completion was US$210m in cash

plus customary working capital adjustments.  As was previously reported, no

debt was raised to finance the transaction.

Trademarks

All registered trademarks and other trademarks belong to their respective

owners.

Contact Information:

Alphawave IP Group plc

John Lofton Holt, Executive Chairman

Jose Cano, Global Head of Investor Relations

ir@awaveip.com

+44 (0) 20 7717 5877

Brunswick Group        

Simone Selzer

Sarah West

alphawave@brunswickgroup.com

+44 (0) 20 7404 5959

Gravitate PR

Lisette Paras

Wynton Yu

alphawave@gravitatepr.com

+1 415 420 8420

About Alphawave IP Group plc (LSE:AWE)

Faced with the exponential growth of data, Alphawave IP's technology services a

critical need: enabling data to travel faster, more reliably and with higher

performance at lower power. Alphawave IP is a global leader in high-speed

connectivity for the world's technology infrastructure. Our IP solutions

therefore meet the needs of global tier-one customers in data centers, compute,

networking, AI, 5G, autonomous vehicles, and storage. Founded in Toronto,

Canada in 2017, by an expert technical team with a proven track record in

licensing semiconductor IP, our mission is to focus on the hardest-to-solve

connectivity challenges. To find out more about Alphawave IP, visit:

awaveip.com (

https://c212.net/c/link/?t=0&l=en&o=3634707-1&h=2250771939&u=http%3A%2F%2Fwww.awaveip.com%2F&a=awaveip.com

)

SOURCE: Alphawave IP Group Plc