Business Weekly - Cambridge, UK

e2v said that it agreed to purchase the Swiss firm, which specialises in semiconductors primarily focused on air quality sensors for automotive applications, from its largest investors, Renaissence PME, Saia Burgess Electronics Holding AG and others, for a total cash consideration of £5m, using its existing bank facilities to fund the acquisition.

MiCS's silicon based gas sensing platform technology is complementary to e2v's existing silicon based sensing technologies and its gas sensing products for industrial safety applications, e2v said.

It added that MiCS has significant long-term contracts in place with a number of blue chip multi-national auto manufacturers with an estimated total value of £23m over a six year period.

The Essex-based firm said that it expects MiCS, which made a £1m loss last year, to remain loss making following the acquisition, but to become earning enhancing for the year ending March 2009.

“The acquisition of MiCS MicroChemical Systems SA is consistent with our strategy to extend our portfolio of specialist electronic components supplied into our established markets,” said CEO, Keith Attwood.