Integrated-circuit distributor WT Microelectronics Co (文曄科技) said yesterday it would acquire Techmosa International Inc (志遠電子) in a share swap deal to expand its product portfolio and market share, according to statements issued by the two companies to the Taiwan Stock Exchange.
In their exchange filings, WT Microelectronics and Techmosa said their boards of directors had approved the 100 percent share swap, in which Techmosa will exchange one of its common shares for 0.547 shares of WT Microelectronics.
With shares of WT Microelectronics closing at NT$56.3 yesterday and Techmosa ending the day at NT$29.9, the deal gives Techmosa shareholders a 3 percent premium.
The two companies did not disclose the value of the deal.
Techmosa had 72.499 million issued shares as of April 30 and based on that figure the deal values the Zhonghe (中和), New Taipei City (新北市)-based company at NT$2.23 billion (US$77.15 million).
The merged entity will have combined capital of NT$3.24 billion, NT$73.55 billion in total revenue and a net profit of NT$1.63 billion, based on last year’s data.
Through this deal, the companies said they expect to strengthen their customer service, scale of economy and earnings ability.
WT Microelectronics counts Texas Instruments Inc, STMicroelectronics NV, Marvell Technology Group Ltd, Fairchild Semiconductor International Inc and Micron Technology Inc as its clients, while Techmosa’s customers include Atmel Corp, National Semiconductor Corp, Nuvoton Technology Corp (新唐科技), Winbond Electronics Corp (華邦電子) and Nanya Technology Corp (南亞科技).