US Government Clearance for MwT Acquisition

26 September 2023

CML Microsystems Plc

("CML", the "Company" or the "Group") 

US Government Clearance for Microwave Technology, Inc Acquisition

CML, which develops mixed-signal, RF and microwave semiconductors for global communications markets, is pleased to announce that it has, today, received formal clearance from the US Government to proceed with the acquisition of Microwave Technology, Inc. ("MwT"), as first announced on 17 January 2023.

In connection with this process, CML has signed a National Security Agreement ("NSA") with the relevant US government agencies, on behalf of the Committee on Foreign Investment in the US ("CFIUS"), whereby CML will be required to implement specific measures to oversee compliance with the NSA.

The Company expects the MwT acquisition to complete during the first week of October 2023 and will make a further announcement upon completion.

About CML Microsystems Plc

CML develops mixed-signal, RF and microwave semiconductors for global communications markets. The Group utilises a combination of outsourced manufacturing and in-house testing with trading operations in the UK, Asia and USA. CML targets sub-segments within Communication markets with strong growth profiles and high barriers to entry. It has secured a diverse, blue chip customer base, including some of the world's leading commercial and industrial product manufacturers.

The spread of its customers and diversity of the product range largely protects the business from the cyclicality usually associated with the semiconductor industry. Growth in its end markets is being driven by factors such as the appetite for data to be transmitted faster and more securely, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial wireless networks for voice and/or data communications linked to the industrial internet of things (IIoT).

The Group is cash-generative, has no debt and is dividend paying.