e2v technologies plc, the specialist developer and manufacturer of high technology components and sub-systems, announces that its subsidiary, e2v Holdings, Inc., has conditionally agreed to buy QP Semiconductor, Inc. for an initial cash consideration of US$65m.
In addition, deferred consideration of up to US$15m may be payable to QP shareholders, subject to future operating profit performance targets being achieved by QP. e2v may satisfy up to US$5m of the deferred consideration through the issue of new ordinary shares to the QP shareholders. All other deferred consideration is to be issued in cash. The overall cash consideration will be funded through existing bank facilities.
QP is a well established and leading US-based designer and supplier of specialty semiconductor components used in military and aerospace applications. Its extensive product range addresses a niche sector within this market, designed to deliver high performance in extreme conditions.
Completion of the acquisition is conditional on the approval of e2v's shareholders, which will be sought at a General Meeting to be held on 18 September 2008. Completion is also conditional on the receipt of certain other regulatory approvals and is expected to take place on 30 September 2008. A circular will shortly be posted to shareholders.
Keith Attwood, Chief Executive said:
``We are delighted to announce the proposed acquisition of QP, which represents a significant opportunity for the Group and is an important step in establishing an operational footprint in the USA. It will increase our market share in the aerospace and defence sector and expand our relationship with contractors to the US Department of Defense.''
``This acquisition will significantly enhance our presence in the high reliability specialist semiconductor market and the board believes that the acquisition of QP will deliver earnings enhancement in the financial year ending March 2009 and material enhancement in the year ending March 2010.''
SOURCE: e2v technologies