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TMCNet:  United Kingdom : Acquisition of Kopin Wireless for $75 million, placing to raise £16.5 million and trading update [TendersInfo (India)]

[January 11, 2013]

United Kingdom : Acquisition of Kopin Wireless for $75 million, placing to raise £16.5 million and trading update [TendersInfo (India)]

(TendersInfo (India) Via Acquire Media NewsEdge) IQE plc, has agreed to acquire the compound semiconductor ( CS ) epiwafer manufacturing business ( Kopin Wireless ) of Kopin Corporation ( Kopin ) for total consideration of $75 million in cash (the Acquisition ).



Kopin Wireless is the leading global manufacturer of heterojunction bipolar transistor ( HBT ) materials which are used in power amplifiers ( PA ), a key wireless component in mobile devices. These are produced using Metal Organic Chemical Vapour Deposition ( MOCVD ) epitaxial wafer technology.

Acquisition highlights: $60 million payable in cash ( Initial Consideration ) to Kopin on completion of the Acquisition ( Completion ) and $15 million payable in cash to Kopin on the third anniversary of Completion ( Deferred Consideration ) Significantly extends IQE s market share and leadership in wireless industry supply and delivers a market leading position in MOCVD HBT Builds substantially on IQE s risk mitigation strategy in wireless - adding Skyworks Solutions, Inc. ( Skyworks ), which has a long standing supply agreement with Kopin Wireless, as a major customer Taiwan manufacturing facility adds to IQE s global manufacturing footprint and will provide the Group with a strong position to access the growing Asian semiconductor market Attractive terms - earnings enhancing from 2013 financial year onwards Significant cost synergies of at least £7 million per annum expected from 2014 Acquisition financing: New banking facility with HSBC for $40 million; $20 million will be funded from the £16.5 million proceeds of the Placing; Organic cash flow to pay the Deferred Consideration of $15 million payable in January 2016 Placing IQE intends to raise approximately £16.5 million through a placing by the Joint Bookrunners, Espirito Santo Investment Bank and Canaccord Genuity Limited, of 56,900,961 new ordinary shares ( Placing Shares ) at a price of 29 pence per Placing Share (the Placing Price ) (the Placing ); The Placing Shares represent approximately 8.82 per cent. of the Group s enlarged share capital following Admission; The Placing Price represents a discount of approximately 0.85 per cent. to the closing mid-market price of IQE s ordinary shares of 29.25 pence on 9 January 2013, being the last practicable date before this announcement; The books for the Placing will open with immediate effect and are expected to close no later than 4.30 p.m. today (c) 2013 Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company

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