Jan 10 (Reuters) – British semiconductor materials maker IQE
Plc said it would buy a unit of U.S.-based Kopin Corp
for $75 million to strengthen its position in the
wireless industry.
IQE said earlier this week it was in advanced talks
regarding a potential significant acquisition.
The Kopin unit, Kopin Wireless, produces materials used in
power amplifiers, a key component in mobile devices.
IQE said the deal would be financed through a $40 million
facility with HSBC and a placement of 56.9 million shares at 29
pence each to raise 16.5 million pounds ($26.4 million).
Shares in IQE, which makes semiconductor wafers that are
used in microchips in smartphones, tablets and GPS equipment,
were up 15 percent at 33.70 pence in afternoon trading on the
London Stock Exchange.
The deal is expected to add to earnings this year, with cost
synergies of at least 7 million pounds a year from 2014, IQE
said.
Cardiff, Wales-based IQE, which has a market value of about
172 million pounds ($275 million), said 2012 revenue was 87
million to 88 million pounds, with core earnings of 16 million
to 17 million pounds.
($1 = 0.6247 British pounds)
(Reporting By Shilpa Hinduja in Bangalore; Editing by Maju
Samuel)
