IQE ACQUIRES WAFER TECHNOLOGY LIMITED
Source: IQE plc
IQE plc, the leading outsource supplier of epitaxial wafers to the Compound Semiconductor Industry, is pleased to announce its first major acquisition, that of Wafer Technology Limited, a global supplier of III-V compound semiconductor substrates and materials.
The acquisition will secure for IQE an important part of it s supply chain which is becoming increasingly critical in this sector of the Compound Semiconductor industry. It will allow IQE to offer a unique and secure range of outsource wafer products to this industry and will introduce new customers to both IQE and Wafer Technology Limited. It will also provide IQE direct access to key Indium Phosphide (InP) wafer products, which are not only critical for most optical fibre light emitting and detecting devices but are also viewed as an essential material for the electronic components required for higher speed communication systems.
Wafer Technology Limited employs 57 people and has a 37,000 sq ft facility in Milton Keynes, UK. The Company employs both Vertical Gradient Freeze (VGF) and Czochralski growth techniques to manufacture its range of Gallium Arsenide (GaAs), Indium Phosphide (InP), and other specialist III-V substrates in diameters ranging from 2" to 4", which are supplied worldwide to major manufacturers of electronic and opto-electronic devices.
Wafer Technology is also a key supplier of high purity bulk GaAs and InP polycrystalline feedstock to the rest of the industry. The Company has long-term supply agreements in place for its critical raw materials, particularly high purity metals.
Financing of the acquisition will be by a combination of cash (raised earlier this year specifically for acquisitions), loan notes and shares. The total consideration at IQE s closing share price yesterday is £41.3 million. The acquisition will be immediately accretive to IQE pre-goodwill earnings.
Martin Lamb will join the Main Board of IQE plc and will also continue as CEO of Wafer Technology Limited.
Dr Drew Nelson, Chairman & CEO of IQE plc commented "This is IQE s first major acquisition and we are very pleased to welcome Wafer Technology Limited as part of the Group. There is great synergy between the two businesses and the combination will considerably strengthen the position of the Group, enabling us to offer a highly secure and wide ranging combination of epi-materials and support products to the rapidly growing Compound Semiconductor Industry".
Martin Lamb, CEO of Wafer Technology Limited added "The combination of Wafer Technology Limited and IQE will provide the Compound Semiconductor Industry community with a unique materials product range. The availability of both epitaxial services and bulk materials within the Group will position us well to take full advantage of the accelerated growth we are seeing in the Industry. We are very excited about the prospects for Wafer Technology Limited as part of the IQE Group."
