RF Micro to buy Sirenza for about $900 mln

(Adds CFO; details from conference call)

By John Tilak

BANGALORE, Aug 13 (Reuters) - Chipmaker RF Micro Devices Inc. (RFMD.O: Quote, Profile, Research, Stock Buzz) agreed to acquire Sirenza Microdevices Inc. SMDI.O, a supplier of radio frequency (RF) components, for about $900 million to expand further into the non-cellular, higher-growth RF markets.

The $16.64 per-share deal, which includes $300 million in cash and the rest in stock, represents a 17 percent premium to Sirenza's closing price on Friday, the company said in a statement.

With the acquisition, RF Micro, which has traditionally derived almost all of its revenue by providing chips to handset makers, will get a broader product portfolio that will help reduce dependence on a few large customers.

"This (deal) clearly provides immediate revenue, customer and product diversification," Chief Financial Officer Dean Priddy said by phone.

Apart from bringing in new customers like Boeing Co. (BA.N: Quote, Profile, Research, Stock Buzz), Sirius Satellite Radio Inc. (SIRI.O: Quote, Profile, Research, Stock Buzz) and ZTE Corp. (000063.SZ: Quote, Profile, Research, Stock Buzz) (0763.HK: Quote, Profile, Research, Stock Buzz), Sirenza will give RF Micro a foothold in high-growth markets such as broadband, WiMAX, and aerospace and defense, Priddy said.

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