Cardiff, Wales--IQE (AIM: IQE), which supplies semiconductor wafers for making infrared (IR) optical devices such as laser diodes, detectors, and thermophotovoltaic cells, has acquired Galaxy Compound Semiconductors (Spokane, WA), a specialist manufacturer of antimonide substrates used in IR technology for commercial and military applications, for up to $14.15 million in cash.
IQE will also place 65 million shares to raise £20.8 million gross to fund the acquisition, selectively expand IQE's manufacturing capacity, repay debt, and strengthen the balance sheet. IQE will be retaining the Galaxy management team and key technical personnel following the acquisition.. IQE intends to support the expansion of Galaxy by providing $1 million of capital expenditure in 2011.
Substrates for many uses
Galaxy was established in 1999; its key products are indium antimonide (InSb) and gallium antimonide (GaSb) substrates, materials used in thermal-imaging cameras, forward-looking IR for navigation through darkness, IR homing missile guidance, detection of heat sources, magneto resistance, and biomedical imaging.
Following the acquisition, IQE will be able to provide IR materials from independent manufacturing facilities at Spokane, WA and at IQE's Wafer Technology operation in Milton Keynes, England.
IQE already owns NanoGaN (Bath, England), which specializes in gallium nitride substrates for blue and green laser diodes and LEDs; NanoGaN has patented a nanocolumn technology for improving the properties of the substrates.
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