MEMSCAP, a provider of micro-electro-mechanical systems (MEMS), has entered an agreement to acquire all of the business and assets of JDS Uniphase’s Cronos MEMS business unit. Cronos will be integrated into MEMSCAP’s manufacturing facility in Bernin.
The Cronos acquisition will provide MEMSCAP with an intellectual property portfolio encompassing 27 existing patents and 27 patent applications in addition to Cronos’ foundry service, currently being expanded from polysilicon-based technology to metal and silicon-on-insulator.
MEMSCAP expects the transaction to be neutral to slightly accretive to earnings in Fiscal 2002 and further expects to derive a significant contribution to earnings beyond 2002.
The acquisition is subject to customary approvals and review including the approval of MEMSCAP shareholders, review of the transaction by an independent appraiser and approval by the stock market regulatory authorities.
MEMSCAP and JDS Uniphase plan to enter into a commercial agreement that will then make MEMSCAP the exclusive supplier to JDS Uniphase of MEMS chips for MEMS-based products for a period of not less than three years following closing of the acquisition.