High-speed transmission interface IC designer ASMedia Technology Inc (祥碩) announced on Wednesday to acquire all of the outstanding shares of Techpoint Inc, including common stock underlying its Japanese depositary shares, at US$20 per share in an all-cash transaction.
The transaction totaling about US$390 million has gained approval from the two companies’ boards of directors, ASMedia said in a statement, adding that it expects to close the deal in the second quarter or early third quarter of this year.
Techpoint is a San Jose, California-based IC designer targeting high-definition video security applications and automotive infotainment systems. It operates design centers in the US, and runs offices in Taiwan, South Korea, China and Japan.
Photo: Vanessa Cho, Taipei Times
As Techpoint is a US company listed in Japan, the deal needs to obtain approval from regulatory authorities in the US and Japan, the statement said.
In addition, upon completion of the acquisition, Techpoint’s Japanese depositary shares would delist from the Tokyo Stock Exchange and Techpoint will become a wholly owned subsidiary of ASMedia, it added.
ASMedia, a subsidiary of PC vendor Asustek Computer Inc (華碩), expects the deal to help extend its presence in the automotive and security sectors, increase its economies of scale and contribute to future earnings growth.
“This acquisition of Techpoint is a landmark step in ASMedia’s strategic development, which will broaden our business portfolio and accelerate our profitable growth,” ASMedia president Lin Che-wei (林哲偉) said in the statement.
“The Techpoint team has built a leading video connectivity technology serving the automotive and security industries, which is complementary and accretive to ASMedia’s high-speed transmission solutions,” he added.
ASMedia reported NT$1.9 billion (US$57.7 million) in revenue for the December quarter, up 11.04 percent from a year earlier, while revenue for the whole of last year rose 26.24 percent annually to NT$8.08 billion, a record high. Earnings per share were NT$39.03 in the first three quarters of last year, compared with NT$22.45 in the same period a year ago.
The company is positive about its revenue growth for this year, thanks to the steady growth in the Universal Serial Bus 4 (USB4) business and the continued market share gain of its major customer Advanced Micro Devices Inc. The company is eyeing a full-year revenue target of NT$10 billion for this year, it said.
Shares in ASMedia rose 0.73 percent to close at NT$2,060 in Taipei yesterday.
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