Pericom Semiconductor Corporation, a worldwide supplier of integrated circuits and frequency control products, announced yesterday that it has cancelled and voided its $12.5 million investment in AKER Technology.
The agreement to void the initial transaction was reached due to ‘significant differences’ on how to set the future direction of AKER.
Under the terms of a new agreement, AKER will sell Pericom its 99.9% interest in its Taiwanese eCERA frequency control products subsidiary for approximately $14.7 million. The transaction is expected to close by August 31, 2005.
“eCERA has been a key supplier to our frequency control products business unit for several years, therefore the alteration of the original agreement is in line with our original goals of having secured access to a top calibre FCP factory to accelerate the development of advanced FCP products,” said Alex Hui, President and CEO of Pericom.
For the first six months of 2005, eCERA – the largest SMD (Surface Mount Device) manufacturer in Taiwan – had revenues of approximately $12.3 million and operating income of approximately $900,000.