IQE completes acquisition of NanoGaN Limited
IQE plc (AIM: IQE), the leading global supplier of advanced wafer products and wafer services to the semiconductor industry, has completed the acquisition of UK based NanoGaN Limited (“NanoGaN”) for an initial consideration of £0.4m which has been settled by the issue of new shares and cash as announced by the Company on 5 October 2009.
The completion follows the admission to trading on AIM of 5,819,134 New Ordinary Shares (being the Placing Shares and the Consideration Shares) at 8.00 a.m. today. The New Ordinary Shares rank pari-passu with the existing issued Ordinary Shares.
Further consideration of up to £3.2m will be settled on the achievement of future milestones relating to the commercialisation of the intellectual property. IQE has the option to settle the further consideration in shares or cash.
Commenting, Dr Drew Nelson, IQE Chief Executive Officer said:
“This acquisition of NanoGaN represents a major milestone in our technology roadmap, and enables the Group to accelerate its entry into the emerging high growth and large volume markets for blue and green semiconductor lasers as well as the key enabling materials for low energy LED lighting.”
IQE plc (+44 29 2083 9400)
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About IQE (www.iqep.com)
IQE is the leading global supplier of advanced semiconductor wafers with products that cover a diverse range of applications, supported by an innovative outsourced foundry services portfolio that allows the Group to provide a 'one stop shop' for the wafer needs of the world's leading semiconductor manufacturers.
IQE uses advanced crystal growth technology (epitaxy) to manufacture and supply bespoke semiconductor wafers ('epi-wafers') to the major chip manufacturing companies, who then use these wafers to make the chips which form the key components of virtually all high technology systems. IQE is unique in being able to supply wafers using all of the leading crystal growth technology platforms.
IQE's products are found in many leading-edge consumer, communication, computing and industrial applications, including a complete range of wafer products for the wireless industry, such as mobile handsets and wireless infrastructure, Wi-Fi, WiMAX, base stations, GPS, and satellite communications; optical communications, optical storage (CD, DVD), laser optical mouse, laser printers & photocopiers, thermal imagers, leading-edge medical products, barcode, ultra high brightness LEDs, a variety of advanced silicon based systems and high efficiency concentrator photovoltaic (CPV) solar cells.
The manufacturers of these chips are increasingly seeking to outsource wafer production to specialist foundries such as IQE in order to reduce overall wafer costs and accelerate time to market.
IQE also provides bespoke R&D services to deliver customised materials for specific applications and offers specialist technical staff to manufacture to specification either at its own facilities or on the customer's own sites. The Group is also able to leverage its global purchasing volumes to reduce the cost of raw materials. In this way IQE's outsourced services, provide compelling benefits in terms of flexibility and predictability of cost, thereby significantly reducing operating risk.
IQE operates six manufacturing facilities located in Cardiff (two) and Milton Keynes in the UK; in Bethlehem, Pennsylvania and Somerset, New Jersey in the USA; and Singapore. The Group also has 11 sales offices located in major economic centres worldwide.
About NanoGaN Limited (www.nanogan.com)
NanoGaN is a venture formed between Professor Wang Nang Wang, Bath University and a number of financial backers. NanoGaN’s IP includes its proprietary Nanocolumn Technology as a means of developing high quality Free Standing Gallium Nitride substrates which are critical for blue and green laser technology, and ultra high brightness LEDs.
In addition to a distinguished academic career, Professor Wang has established a solid business reputation within the technology sector having served as Chairman and President of Quantum Optech Inc and as co-founder of Arima Optoelectronics, both based in Taiwan.
IQE has enjoyed a long standing association with NanoGaN having been selected as a key strategic epitaxial materials partner by Professor Wang. The development of NanoGaN’s unique Nanocolumn technology is at an advanced stage and is expected to generate initial sales during 2010, followed by rapid sales growth as the commercialisation is completed.
In conjunction with this acquisition, IQE is pleased to announce that Professor Wang has accepted appointment as Chief Scientific Advisor to the IQE Board.