MEMSCAP announced this week it has fully executed its FABLITE Program through the sale of its MEMS fab in North Carolina, as well as the conclusion of a strategic supply agreement for its optical communications products. MEMSCAP entered into a definitive asset purchase agreement with Science Corporation, a California-based company, which develops advanced medical technologies. The sale and transfer of certain assets of MEMSCAP's US subsidiary includes the entire team in North Carolina, the North Carolina plant lease as well as all plant's tools and equipment and associated technology, and the foundry business customers. The purchase price to acquire the above assets totals $3.0 million.
The asset purchase agreement excludes the variable optical attenuator (VOA) products, and MEMSCAP's optical communications business will remain under the ownership of MEMSCAP.
Concurrent with the transaction closing, MEMSCAP and Science Corporation entered into a strategic supply agreement for the manufacturing and supply of products for the MEMSCAP VOA business. This agreement includes a minimum of 3 years supply of chips and wafers. Following this transaction and the on-schedule completion of the FABLITE Program, MEMSCAP becomes focused around its avionics and medical businesses operated by MEMSCAP Norwegian facilities, as well as the fabless VOA product line servicing MEMSCAP's optical communications business. This new organization is expecting to deliver significant improvement to MEMSCAP's agility and profitability.
"We are delighted to enter this transaction with Science Corporation, assuring to our teams in North Carolina a solid new home and for MEMSCAP the continuity of servicing the optical communications business with the same standards," said Jean Michel Karam, Chairman and CEO of MEMSCAP. "We are very pleased for having conducted the FABLITE Program from the idea to an on-schedule implementation. Today, we are excited to enter 2023 with such agile organization we planned three years ago."
MEMSCAP retained Microtech Ventures (https://microtechventures.com) as its M&A advisor to assist with this transaction. Microtech Ventures is focused on investments and M&A advisory services for sensors, MEMS, and microtechnology companies. The firm works with Fortune 500 companies, IDMs, fabless sensors and MEMS makers, foundries, startups, and fabrication equipment makers.
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