Akoustis Buys Majority Ownership Position In RFM Integrated Device

Akoustis Technologies Inc AKTS acquired a 51% majority ownership position of RFM Integrated Device, Inc. (RFMi), with the right to purchase the remaining 49% in 2022.
Akoustis paid $6.0 million in cash and $2.5 million in stock to Tai-Saw Technologies Co, Ltd (TST) for 51% of RFMi's stock. The company holds the option to acquire the remaining stake by June 30, 2022, for an additional $3.5 million in cash and $4.0 million in stock.
The transaction involves earn-out payments of up to $3.0 million based on the future operating results of RFMi.
Akoustis noted that the business is accretive, with a positive cash flow, and likely to contribute $0.500 million - $1 million in revenue in the December quarter.
"RFMi's products complement our patented XBAW platform and make it possible to accelerate the development of multi-chip modules that span 4G, 5G, Wi-Fi, and satellite technologies for multiple markets," Akoustis CEO Jeff Shealy said.
Akoustis held $88.3 million in cash and equivalents as of June 30.
Price Action: AKTS shares closed lower by 5.94% at $8.23 on Monday.