SINGAPORE (Dec 29): Mainboard-listed AEM Holdings, the provider of semiconductor and electronics test equipment, is acquiring French company Mu-TEST for 7.53 million euros ($11.4 million).
Mu-TEST is a semiconductor test solutions provider in the automated test equipment (ATE) industry.
The purchase consideration is arrived at on a willing buyer and willing seller basis based on an enterprise value of 8 million euro and assuming an estimated net debt of 475,000 euro as of December 2019.
The payment for the acquisition, which will be funded via internal resources, will be made in three stages over the next three years.
AEM will also provide a corporate loan of about 0.5 million euro to Mu-TEST to repay its existing convertible bonds.
The purchase price is not expected to have any material impact on AEM’s net tangible assets per share and earnings per share for the financial year ended Dec 31, 2020.
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AEM says the acquisition will add customised tester development capabilities to its repertoire, which complements its Asynchronous Modular Parallel Smart (AMPS) offering to deliver complete System Level Test (SLT) solutions for the semiconductor and electronics industries.
“Mu-TEST’s leading edge technology and expertise in providing highly customizable and low-cost testing solutions are synergistic to AEM’s business,” says AEM executive chairman Loke Wai San.
“As we grow our customer base for the AMPS and SLT-i business, having Mu-TEST under the AEM umbrella will enable us to provide a wider range of solutions, combining both handling and testing capabilities that cater to the diverse needs of our customers,” he adds.
Shares in AEM closed at $1.89 on Friday. Year-to-date, the counter has climbed 129% from 82.5 cents at the start of the year.
