Exar to Sell its iML Subsidiary for $136 Million
Exar Corporation, a supplier of analog mixed-signal semiconductor components and system solutions has announced that it has entered into a definitive agreement to sell its Integrated Memory Logic Limited (iML) subsidiary to Beijing E-Town Chipone Technology, a consortium comprised of Beijing-based IC design and solutions manufacturer Chipone Technology and its financial partner Beijing E-Town International Investment & Development. Exar's iML is a provider of power management and colour calibration solutions for the flat-panel display and LED lighting markets. The purchase price for the transaction is $136 million, net of cash acquired.
"We are pleased to have entered into this agreement with E-Town Chipone, which we believe represents significant value creation for our stockholders, facilitates continued innovation for our display customers, and presents a unique opportunity for our iML employees to join with E-Town Chipone to create critical mass and become a market leader," said Ryan A. Benton, Exar Chief Executive Officer. "This transaction is yet another major step forward in our larger strategy to focus on our core competencies, maximize Exar's operating cash and redeploy assets toward our fundamental goal of increasing shareholder value."
Jinfang "Frank" Zhang of Chipone, Chairman & Chief Executive Officer added, "The acquisition of iML brings a world-class design team, highly differentiated analog mixed-signal and power management products to Chipone's portfolio, and expands our exposure to world-class customers. Combining the expertise and resources of both companies will accelerate our delivery of innovative and differentiated products, and is representative of Chipone's strategic commitment to being the market leading IC solution provider serving the Display market."
Yongzhong Lu, E-town Capital's Chairman, added, "iML's business is highly complementary to Chipone's current business. With the addition of iML's products and technology, Chipone will provide total IC solutions to flat panel display players. E-town Capital's investment in this venture is a win-win one and we believe we can get good return from the investment and promote the expansion of high-tech industry in E-town area. Chipone is positioned to become a leader with the addition of iML's technology and we will continue to support the new Chipone's growth."
Richard L. Leza, Exar's Executive Chairman, added, "This transaction is a fantastic conclusion of Exar's Board reviewing strategic alternatives and analyzing long-term risk. After evaluating several options, we are pleased to have entered into this agreement with E-Town Chipone. We strongly believe this represents significant value creation for our stockholders. Exar will now dedicate all of our energy and focus on delivering our core analog and mixed-signal products and advanced technology new products, where we have favourable market positioning."
