Cirtek inks $77M deal to buys US antenna supplier Quintel

Cirtek’s manufacturing hub in Laguna
(photo: www.cirtekholdings.com)

Laguna-based electronics manufacturer Cirtek Holdings Philippines Corp. has signed a $77-million deal to acquire US-based Quintel, a leading supplier of antenna solutions to North America’s telecom carriers.

Cirtek has been a contractor of antennas for Quintel, which earlier decided to pull out of China due to concerns on intellectual property and quality, benefitting Cirtek which thus became Quintel’s only other supplier in Asia.

A definitive agreement has been signed between Cirtek and Trillium International I, GP, as shareholder representative of Quintel Cayman Ltd. for the former to acquire 100 percent of Quintel.
Trillium – a Rochester, New York-based private equity firm managing early stage venture capital and growth equity funds – had been a shareholder of Quintel since 2007.

Upon closing on July 31, 2017, the transaction will immediately give Cirtek a significant presence in the large and rapidly growing base station antenna market, estimated to be more than $14 billion by 2020.

The board of directors of each company had approved the transaction. Cirtek intends to fund the transaction through debt financing.

Quintel is a leading innovator of spectrum and space-efficient base station antennas for wireless networks. Among Quintel’s major customers include two of the top five telecom carriers in North America.

Quintel recently expanded its industry-leading MultiServ™ Slimline Antennas portfolio. In addition to the 12-Port Multiband Antenna, Quintel now has 10 Port antennas, both of which come in four-, six and eight-foot lengths. This latest Slimline Antenna utilizes the same 12”/300mm wide form factor that all Quintel antennas use, providing the industry’s only “one size fits all” portfolio.

Cirtek chair Jerry Liu said: “Quintel’s cutting edge R&D (research and development) and product capabilities significantly add to and complement Cirtek’s growing portfolio in wireless communication, and is aligned with our business focus on high-growth market segments.”

“Further, being the strategic manufacturing partner of Quintel products places us in a unique situation to achieve significant synergies through value engineering, research and development collaboration as well as cost reduction, resulting in high-quality, reliable and cost-competitive products,” said Roberto Juanchito Dispo, Cirtek vice chair and president.

“We are pleased that Quintel has achieved another milestone, becoming a major component of a large technology company with world-wide scope. Quintel has built a major business in North America, and through work with the Cirtek team will provide increasing innovation and valuable products world-wide, while making a positive impact on the regional economies in Rochester New York and San Jose California”, said Jose Coronas and Jim Stoffel, general partners of Trillium International.

“Quintel is extremely pleased to be part of the Cirtek team which immediately provides us with the horizontal growth opportunities as well as vertical integration with a highly capable manufacturing group to enhance our current product portfolio and improve our overall efficiencies,” said David Piazza, Quintel’s president.

“Additionally, Quintel’s R&D innovations combined with Cirtek’s world class micro wave and millimeter wave product and manufacturing know-how will enable Quintel’s 5G product portfolio for tomorrow’s high growth wireless communication market.”

Credit Suisse serves as exclusive financial advisor to Cirtek and Livnah Associates is legal advisor to this transaction. Stifel services as exclusive financial advisor to Trillium International Funds and Quintel, and Nixon Peabody is its legal advisor.