A review of the three recent acquisitions in the RF industry

Acquisitions are a significant source of innovative consolidation in the tech industry. Recently, there has been a trend toward RF-focused acquisitions. What does this mean for electronics engineers and the RF industry?

Acquisitions are common in the tech industry, often replacing research and design at traditional large companies. In niche industries like radio frequency (RF), they can play a bigger role because there are fewer competing companies. 

Another benefit of acquisitions is that they can also allow companies to enter new applications and gain a technological advantage over other companies. With the widespread adoption and deployment of 5G steadily increasing in the RF industry and the race to lead in supplying the military sector, acquisitions are becoming increasingly diversified.

Before diving into recent RF-focused acquisitions, it’s first necessary to understand the RF industry and why these acquisitions are particularly important to the industry.

RF Industry Overview

RF technology serves many industries, with applications in 5G and smartphone devices, aerospace and defense, automotive, etc. The market has been growing rapidly and is expected to reach $60 billion by 2026.

Some of the key factors influencing the growth include the demand for direct wireless connectivity devices and the rising popularity of consumer electronics.

However, there are relatively few major players in the market compared to the volume of industries and applications it serves, and major companies are reshaping their product portfolios with the aim of focusing on introducing new advanced technologies and innovative products.

With only a few key players, why is there constant acquisition activity in the RF industry?

Why do RF companies seek acquisitions?

RF engineering helps drive advancements throughout the public and private sectors; however, technology moves so quickly that it can be difficult to keep up or stay ahead. And there are few signs that the demand for advanced RF technology will slow down.

Private companies, governments, and the military are all competing to have the latest innovations. However, certain areas of RF products, such as defense and homeland security, have demanding and unique requirements that are often not met by the commercial market. It is this requirement that draws attention to the need for R&D capabilities. 

Some RF technologies represent a niche market that prevents companies from investing in their own R&D, such as RF components and subsystems for military applications. However, this is certainly an area worth investing in. Through acquisitions, companies can symbolically stay ahead of the curve as RF technology develops and evolves into commercial electronics, and drive the maturity and cost-effectiveness of the technology in other areas.

Let's look at three recent acquisitions and analyze what each might mean for the company.

Acquisitions are nothing new in the RF industry. Recent acquisitions have demonstrated their significance in helping leading companies deliver new capabilities, expand their total addressable market size, and improve their position within the industry.

Knowles acquires IMC

The first notable acquisition came from Knowles Precision Devices. Knowles makes a variety of components for the military, medical, electric vehicle, and 5G markets.

Knowles seeks to challenge itself as a specialty component manufacturer with high reliability, temperature, performance and frequency solutions. It also claims to pride itself on innovation and creativity, and is always looking for ways to further expand its product suite and meet customer needs, particularly in the aerospace and defense markets, especially in light of its other recent acquisitions.

Recently, Knowles announced the acquisition of Integrated Microwave Corporation (IMC), gaining exclusive rights to manufacture and sell IMC products worldwide.

IMC specializes in the design and manufacture of custom precision RF microwave filters for the aerospace and defense industries and is a supplier to NASA. The acquisition should enable Knowles to offer complete RF and microwave filtering solutions, providing ceramic and cavity filters for low frequency and high power applications.

By combining IMC's products and expertise with its engineering resources, Knowles hopes to improve product performance and better serve its customers.

Mercury Systems Acquires Pentek

The second most notable, recent acquisition news is Mercury Systems, a global business technology company that provides open architecture processing solutions to the aerospace and defense industries.

The company is an expert in powering mission-critical applications in challenging and demanding environments, with safety as a key concern. Mercury Systems has had a long-standing acquisition trend over the past 20 years and already has an impressive portfolio of pre-integrated subsystems supporting many aerospace and defense programs and platforms; however, there is always a gap to be filled.

To increase its product offerings, Mercury Systems recently acquired Pentek, a leading designer and manufacturer of high-performance radio and data acquisition boards, logging systems, and subsystems for high-end commercial and defense applications.

The acquisition of Pentek has the potential to fit well with Mercury's strategy. This addition could increase the scale and breadth of the company's portfolio, deepen its penetration in the core radar and electronic warfare markets, and enable it to accelerate growth through low-risk content expansion.

AMETEK acquires NSI-MI

The last acquisition to mention is AMETEK, a leading manufacturer of electronic instruments and electromechanical devices with a focus on analytical tools, precision components, and specialty materials.

Recently, AMETEK announced that it is acquiring NSI-MI Technologies, a provider of RF and microwave solutions and services.

NSI-MI claims to have expertise in RF and microwave technologies, providing complete test and measurement systems for specialized applications throughout the aerospace, defense, and automotive markets. The acquisition appears to be a favorable one as NSI-MI hopes to complement AMETEK’s existing electromagnetic compatibility test and measurement business.

As these companies and acquisitions look to further improve their products and expand applications, what impact do these acquisitions have on electrical engineers?

What impact does the RF acquisition have on electrical engineers?

There is certainly a buzz of acquisitions in the RF space. Acquisitions between these leading companies can more easily get new technologies into the hands of engineers by cross-promoting products across their combined global base.

The availability of this new technology means their customer base can address the needs of audiences that were previously unreachable. Additionally, the acquisition will result in improved interoperability between toolsets.

While overlapping technologies may eventually disappear as a result, the resulting solutions are more cost-effective and more readily available. These acquisitions may also help solve engineering challenges facing defense companies.