QP Semiconductor, a leading provider of mission-critical integrated circuits for the military, aerospace and high reliability industries, confirmed that it has agreed to be acquired by e2v technologies, a world-class developer and manufacturer of high technology components and sub-systems. The acquisition, which is expected to meet shareholder approval and regulatory requirements by September 30, 2008, will bring complementary product portfolios together to serve an expanded global base of customers seeking high-reliability, mission critical components.
With sales of approximately $360 million and 1,800 employees worldwide, publicly held e2v is much larger than privately held QP Semiconductor, with sales of about $24 million and 90 employees. Significantly, both firms are solidly profitable with strong balance sheets, and the product portfolios of the two companies are entirely complementary.
According to John Stannard, QP Semiconductor co-founder and president, the “synergistic acquisition” will enable QP to intensify its focus on design and manufacturing as the e2v sales force serves customers via its extensive international sales and distribution channels. “We will continue to operate from Silicon Valley with our existing management team and employees, and our product will continue to be sold under the QP Semiconductor brand. Once the acquisition is completed, the only difference our existing customers should see is a higher level of responsive customer service.”
Among the synergies that will come from the acquisition, Stannard cited QP’s access to e2v’s state-of-the-art design and manufacturing capabilities. “We look forward to advancing our manufacturing and re-engineering of very complex circuitry to new levels,” he added.
Keith Attwood, e2v’s CEO, said: “We are delighted to announce the proposed acquisition of QP Semiconductor, which represents a significant opportunity for e2v and is an important step for us in establishing an operational footprint in the USA. It will increase our market share in the aerospace and defence sector and expand our relationship with contractors to the US Department of Defense.”
About e2v technologies
e2v is a leading designer, developer and manufacturer of specialised components and subsystems. Products are defined under two groups: sensors and semiconductors, and electronic tubes. They enable innovative systems for medical and science, aerospace and defence, and commercial and industrial applications. With 1800 employees in 5 manufacturing plants through Europe and sales and support offices in 4 key global territories, as well as a network of distributors and representatives covering other key territories, e2v has a true global presence. e2v is listed on the main market of London Stock Exchange (e2v.l). For the year ended 31 March 2008, the Company achieved sales of £205m.
About QP Semiconductor
QP Semiconductor is a privately held California company founded in 1985. The company today is the largest fabless semiconductor firm serving the military, aerospace and high reliability industries. During the past decade, the company has evolved into the leading semiconductor company that designs, re-engineers and provides a full range of manufacturing capabilities to extend the life of classic ICs for a host of mission-critical programs. The company focuses on providing replacement hermetic parts for DMS (Diminished Manufacturing Sources) and EOL (End of Life) products. QP Semiconductor ranks today as one of the largest fabless manufacturers of high-reliability hermetic ICs for military & aerospace systems. The company provides over 12% of all QML part numbers listed by the Defense Supply Center, Columbus (DSCC). QP Semiconductor is headquartered in Santa Clara, California with sales representation throughout the world.