news digest ♦ compound semiconductor ♦ industry news
St. Petersburg, Optogan is a vertically integrated producer of high brightness LEDs for various global applications including solid state lighting market.
In July 2009, Optogan began operations in Russia planning to advance the development of its unique products and to ramp up high-volume manufacturing capabilities. In May 2010, the Optogan Group acquired an industrial facility and infrastructure of Elcoteq in St. Petersburg where new LED production lines are being set up. It plans to launch the first production line with the capacity of 30 m LEDs a month in fall 2010.
IQE in a Different World with Acquisition of Galaxy Compound Semiconductors
The acquisition of Galaxy for upto $14.15m in cash will expand IQE’s Antimonide portfolio. This sees IQE intending to place 65 million shares to raise £20.8 million gross for the purchase, and for capacity expansion and strengthening of the balance sheet.
IQE, a global supplier of advanced wafer products and wafer services to the semiconductor industry, has acquired Galaxy Compound Semiconductors, a specialist manufacturer of antimony substrates used in infrared technology, for up to $14.15m in cash.
IQE also separately announces its intention to place 65 million shares to raise £20.8m gross to fund the acquisition, selectively expand IQE’s manufacturing capacity, repay debt and strengthen the balance sheet to position the Group for accelerating future growth.
Acquisition highlights include: ·
· Immediately earnings enhancing
Consideration between $5.5m and $14.15m based on multiple of up to 5.5x Galaxy’s 2010 EBITDA ·
Strategic acquisition complements IQE’s existing IR capabilities at Wafer Technology, Milton Keynes, UK, enables multi-site manufacturing, provides access to large US market, and creates significant technology benefits ·
Positions IQE as world’s leading provider 52
www.compoundsemiconductor.net October 2010
of antimony based infrared (IR) substrates, with diverse applications in imaging for commercial and military applications ·
Forms part of the Group’s strategy to be the leading global supplier of advanced optoelectronic materials and adds additional IP ·
Galaxy’s unaudited 2009 accounts showed revenues of $3.0m, EBITDA of $0.8m · ·
raise £20.8m ·
growth o Selective investment to expand the
Group’s existing manufacturing capacity o Repay approximately £10m debt o Strengthen balance sheet to enhance
growth prospects
Dr Drew Nelson, IQE chief executive, said, “The strategic acquisition of Galaxy positions IQE as the global leader in the rapidly growing market for antimony based infrared materials that are crucial to advanced imaging systems in a variety of commercial and military applications. Galaxy provides IQE with new manufacturing capacity, new products and significant new clients.”
“With funds raised from today’s Placing, IQE can also selectively expand its existing manufacturing capabilities and a strengthened balance sheet with net funds will position the Group for further and more rapid growth,” he concluded.
Infrared materials are a rapidly growing segment of the opto-electronics sector and the directors of IQE believe the acquisition of Galaxy will open up major opportunities in global imaging markets. IQE intends to support the expansion of Galaxy by providing $1 million of capital expenditure in 2011.
Galaxy was established in 1999 and is based in Spokane, WA in the United States of America. Its key products are Indium Antimonide (InSb) and Gallium Antimonide (GaSb) substrates, key materials used in infrared imaging systems. Its products are used in a wide range of applications including thermal imaging cameras, forward- looking IR for navigation through darkness, IR homing missile guidance, detection of heat sources, magneto resistance, biomedical imaging and ultra high speed electronic circuits.
Management and key personnel to remain Intention to place 65 million shares at 32p to
Use of proceeds to: o Fund acquisition and invest in Galaxy’s
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