CML Microcircuits Regulatory News (CML)

27 May 2016

CML Microsystems Plc

Acquisition

CML Microsystems Plc ("CML" or "the Group"), which designs, manufactures and markets mixed-signal and Radio Frequency (RF) semiconductors, primarily for global communication and solid state storage markets, announces that it has entered into a definitive agreement to acquire China-based Wuxi Sicomm Technologies Ltd ("Sicomm") and affiliated companies.

Founded in 2003, Sicomm is a fabless semiconductor company and solutions provider specialising in the development of integrated baseband processors and RF semiconductors for global wireless communication markets. Sicomm has approximately 30 employees and is headquartered in Wuxi, China, with offices in Shanghai and Quanzhou. The company's product range, which partially competes with existing CML solutions, is targeted for use within consumer, industrial and professional radio products and focusses on the customer need to achieve the right balance between cost, functionality and technical performance.

This acquisition expands the Group's product portfolio, strengthens its Far Eastern regional support resources and reinforces CML's position as a leader in the professional and industrial wireless communication semiconductor market.

The acquisition, which is subject to normal Chinese domestic regulatory clearance, is valued at US$11m and will be funded from a mixture of existing cash resources and the issue of 774,181 new CML shares. The majority of the shares are subject to specific lock-in restrictions over a three year period and are provided under existing AGM resolution approval. The deal is expected to close during the first half of the current financial year to 31st March 2017 and a further announcement will be made at that time.

"This dedicated and experienced team will be an important asset as we continue to focus on sustainable growth. Sicomm's product range, trading relationships and technical support abilities complement and enhance the Group's existing skills and strategy, and are expected to enable compelling technical and commercial benefits for our customers", said Chris Gurry, CML's Group Managing Director.