Premstaetten, Austria-based ams has acquired Heptagon, an industry leader in sensing, illumination and 3D imaging solutions with offices in Switzerland, Singapore, Silicon Valley and China.
The purchase price is, well, complicated, as it’s a mix of cash, stock, a capital increase and earn-outs. From the press release:
“The upfront consideration includes USD 64m in cash from available funds, a capital increase of 15% of outstanding shares from authorized capital (excluding subscription rights) and shares from currently held treasury shares for a total value of the upfront consideration of approx. USD 570m. The earn-out consideration will be contingent on future results of Heptagon‚Äôs business over fiscal year 2017 with a potential maximum value of USD 285m.”
That means the deal could be worth up to $919 million, or approximately ‚Ç¨845 million, if Heptagon hits the targets set for its next fiscal year. Heptagon‚Äôs current 12-month revenue run rate is said to be around $90 million or about ‚Ç¨83 million.
The company employs more than 830 people around the globe, including 120 engineers and 500 manufacturing staff. It has a wealth of intellectual property in optical packaging, including more than 250 patent families.
Heptagon has raised tens of millions over the years, including from GGV Capital, Innovations Kapital of Sweden, Innovacom of France, Nokia Growth Partners, High Tech Private Equity, Credence Partners, Jolt Capital, AAC Technologies and Heliconia Capital Management.
With this transaction, ams says it aims to become the clear worldwide leader in optical sensing technologies, and that it anticipates industry and technology trends to drive growth in new applications.