IQE Regulatory News (IQE)

21 Aug 2006 07:00

IQE PLC21 August 2006 IQE plc Embargoed for release until 7am, 21 August 2006 21 August 2006 IQE plc (the ''Company'' or ''IQE'') Acquisition IQE, the leading global outsource supplier of customised wafer products andoutsource wafer services to the semiconductor industry, has completed theacquisition of the Electronic Materials Division ("EMD"), the US epi foundrybusiness from EMCORE Corporation Inc. (NASDAQ listed: EMKR) ("EMCORE"). Key details of the acquisition IQE has acquired the assets and business of EMD for a total of $16 million. Thetotal consideration is based on an initial payment of $13 million in cash and afurther $3 million in cash payable in four equal quarterly payments. Thedeferred consideration will bear interest at 7.5 per cent. per annum The acquisition has created the leading global outsource supplier of epi wafersto the wireless market, providing significant opportunities to accelerate salesinto existing and new customers by providing the broadest range of current andnext generation products All of EMD's employees, including its strong management team, have been offeredemployment with IQE and it is the intention of the Board that the EMD businesswill continue to be run as a stand alone entity in New Jersey Noble & Company Limited has placed 87.5 million new ordinary IQE shares ("NewOrdinary Shares") at 13.75p per share to raise approximately £12 million (beforeexpenses) to finance the consideration and working capital (the "Placing"). Thenew ordinary shares were admitted to trading on AIM on 16 August 2006 Following the passing of the resolutions put to the shareholders at theExtraordinary General Meeting held on 15 August 2006, admission of the NewOrdinary Shares to trading on AIM on 16 August 2006, and settlement of fundswith EMCORE IQE has now completed the acquisition Details of the business EMD provides foundry based production of high performance compound semiconductorelectronic epitaxial materials, with a focus on the wireless markets. EMD isbased in the US, has approximately 50 employees, ten advanced epitaxial toolsand is one of the top five third-party suppliers of epi wafers in the world. EMD has pursued a similar strategy to that of IQE, in building a strongoutsource foundry model for the supply of epi wafers. They have concentrated onHBT based technologies for power amplifier applications, as well as integratedBiFET and GaN structures, and consequently supply a range of highlycomplementary products to a range of customers different to that of IQE's owncustomer base. The acquisition positions IQE as the leading global outsource supplier ofcurrent and next generation products into the wireless marketplace includingPHEMT, HBT, integrated BiFET and advanced GaN technologies. The Directorsbelieve this will create significant opportunity to grow revenues withinexisting IQE and EMD customers by offering all major technology platforms to theenlarged customer base, from the largest, state of the art production capacityin the industry. Dr Drew Nelson, President & CEO of IQE plc commented: "We are very happy tohave completed this acquisition, which represents a key step forward in IQE'sdevelopment as the leading outsource wafer supplier worldwide to the globalsemiconductor industry. The joining of the two companies allows IQE to offer atruly one stop wafer outsource service to its customers, with a complete rangeof current and next generation products. This transaction assures EMD's currentcustomers that as part of a larger wafer outsource group all the necessaryresources are in place to fully support the joint customer base as their waferdemands continue to grow." Contacts IQE plc +44(0) 29 2083 9400Dr Drew Nelson, President & CEOStuart Hall, CFOChris Meadows, Investor Relations Noble & Company Limited +44(0) 20 7763 2200John Llewellyn-LloydGraeme Bayley About IQE IQE is a leading provider of outsource epitaxial wafer services to the globalsemiconductor industry. Its wafer products include a portfolio of compoundsemiconductor wafers for use across the whole spectrum of opto electronic andwireless applications, a range of advanced compound semiconductor substrates,and a comprehensive epi service of advanced products for the silicon industry.IQE operates state of the art manufacturing facilities utilizing all of the keycrystal growth technologies, with facilities located in Cardiff and MiltonKeynes, UK and in Bethlehem, Pennsylvania , USA. IQE's products are found in adiverse range of leading edge consumer, communication, computing and industrialapplications, including mobile handsets and wireless infrastructure, opticalcommunications, optical storage (CD, DVD), laser optical mouse, laser printers &photocopiers, thermal imagers, leading edge medical products, barcode, highefficiency LEDs and a variety of advanced silicon based systems. For furtherinformation about the IQE Group, please visit http://www.iqep.com. This information is provided by RNS The company news service from the London Stock Exchange