IQE announces £81m investment led by Macom
UK compound semiconductor wafer firm IQE plc has announced a strategic investment from semiconductor maker and existing customer Macom Technology along with other existing shareholders, raising gross cash proceeds of around £81 million.
Jutta Meier, CEO of IQE, commented: “This proposed transaction is transformational for IQE. The investment from Macom and other existing shareholders will provide the balance sheet strength to allow us to capitalise on the opportunities in front of us, while maintaining our unique global footprint.
"We are now better positioned than ever to execute on our growth strategy, including in key technologies such as Indium Phosphide (InP) and Gallium Nitride (GaN). We look forward to delivering value for shareholders with continued fiscal rigour and by serving our global customer base through operational excellence.”
The proceeds of the fundraising will be used to repay existing bank debt, redeem existing loan notes and strengthen the balance sheet, ensuring the group has a strong capital position from which to fund operations and investments in its core technology.
As a result, the company’s board is ceasing its Strategic Review and following this announcement, IQE is no longer considered to be in an 'offer period'.
Alongside the investment, IQE and the Macon will enter into long-term strategic supply agreements on completion enabling scalable, high-volume manufacturing across key growth segments.
Mark Cubitt, chair of IQE, commented: “This is an incredibly exciting time for IQE. I am pleased we have concluded the Strategic Review after a thorough process, achieving a fantastic outcome for all stakeholders. Today's announcement is a recognition of the intrinsic value of the company and its importance in key growth segments. This fundraise removes debt presures and leaves the group with a capital structure to enable future growth.”
Stephen Daly, CEO of Macom, commented:“As a longstanding customer, Macom believes this transaction will allow IQE to realize its full potential in technology, operational execution and financial performance.”
