MPD Signs Letter of Intent to Acquire Amplidyne

Microwave Power Devices (MPD) has signed a letter of intent to acquire Amplidyne Inc. Under terms of the agreement, MPD will acquire the power amplifier manufacturer for approximately $7.2 million.

Sharon Kaler, director of finance and investor relations for MPD, says MPD is looking to acquire Amplidyne for several reasons. The most important, however, revolves around a new amplifier design developed by Amplidyne.

Amplidyne has been working on a new power amplifier design for the wireless industry. According to Kaler, MPD feels this design may be further along than any product currently under development or in production at MPD.

Although Amplidyne has the new amplifier design, it does not have the capability to manufacture the product. That's where MPD steps in. Kaler says that MPD, through its automated lines, can provide the manufacturing capabilities Amplidyne needs to get this amplifier design to market.

Under the acquisition agreement, MPD is also reviewing several of Amplidyne's patents. Kaler says that MPD wants to determine if this patented technology can be employed in its current and future amplifier products.

Finalization of the transaction is subject to completion of due diligence by both parties, approval by MPD's board of directors, approval by Amplidyne's board and shareholders, the execution of a definite merger agreement, and other customary conditions. As a result, the transaction is expected to be completed by April 1999.