Powerwave Technologies and LGP Allgon enter into a strategic combination transaction
Powerwave Technologies and LGP Allgon enter into a strategic combination transaction Powerwave Technologies makes recommended offer for LGP Allgon equivalent to SEK 61.87 per share Introduction Santa Ana, CA and Stockholm, Sweden - 1 December 2003 - Powerwave Technologies, Inc., a Delaware (US) corporation listed on the Nasdaq National Market (Nasdaq: PWAV) ("Powerwave") and LGP Allgon Holding AB (Stockholmsbörsen: LGPA) ("LGP Allgon") today announced that they have agreed to combine their businesses in a strategic transaction valued at approximately 3,070 million SEK (USD 407 million(1)) to create a world-wide leader in the design and manufacture of a broad range of wireless infrastructure products and solutions. The combination will be effected by a public offer from Powerwave (the "Offer") for all of the outstanding shares of LGP Allgon. Under the terms of the Offer, Powerwave is offering 1.1 newly issued Powerwave shares for each LGP Allgon share. LGP Allgon's Board of Directors unanimously recommends that LGP Allgon shareholders accept the Offer. Powerwave is the leading independent supplier of high performance radio frequency ("RF") power amplifiers. LGP Allgon is a world leading solution provider in the area of radio-based mobile infrastructure equipment. Bruce Edwards, President and Chief Executive Officer of Powerwave, stated: "The combination of Powerwave and LGP Allgon will extend our leadership in wireless infrastructure across key products and solutions, including coverage and capacity solutions and key base station subsystems. Combining our complementary geographical strengths and customer relationships will lead to numerous cross-selling opportunities for the combined company's products on a global basis. We are excited about the opportunity to leverage one of the broadest portfolios of products and services in the wireless industry to enhance our leadership position in OEM and operator direct channels. We at Powerwave are proud to welcome the LGP Allgon team which has a strong heritage of product excellence and business execution." Commenting on the Offer today, Bengt Broman, President and Chief Executive Officer of LGP Allgon said: "LGP Allgon and Powerwave are an excellent combination. This strategic combination will result in a broader product portfolio for the existing generation technologies and provide a stronger platform for providing next generation technologies. This strategic combination will significantly expand geographic coverage for both businesses across all customer segments and markets and will create a truly global provider of higher value integrated wireless solutions." (1) Based on SEK/USD exchange rate of 7.55 on 28 November 2003. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/12/01/20031201BIT00360/wkr0001.doc http://www.waymaker.net/bitonline/2003/12/01/20031201BIT00360/wkr0002.pdf