IQE acquires Emcore in £8.7m deal
Epiwafer foundry IQE, which has a manufacturing facility in Milton Keynes, has completed its acquisition of component and subsystem maker Emcore Corporation Inc’s Electronic Materials Division (EMD), one of the top five third-party epiwafer foundries, for £8.7m.This comprises an initial payment of just over £7m, plus £1.63m payable in four equal quarterly payments subject to 7.5 per cent interest per annum.
For its financial year to end-September 2005, EMD’s revenue was £6.64m.
The deal is being largely financed by a share placement that is designed to raise £12m.
EMD provides foundry production of electronic epitaxial materials, with a focus on the wireless markets, and has concentrated on HBT-based technologies for power amplifier applications, as well as integrated BiFET and GaN structures.
IQE claims the acquisition has created “the leading global outsource supplier of current and next-generation products into the wireless marketplace.
These include pHEMT, HBT, integrated BiFET and advanced GaN technologies, the company says.