Austrian firm AMS, a supplier of high-performance sensor and analog solutions, has agreed to acquire 100% of the shares in Princeton Optronics, Inc., a provider of Vertical-Cavity Surface-Emitting Lasers (VCSELs). The acquisition is an all-cash transaction.
Princeton Optronics develops and supplies high-performance VCSELs for mobile, consumer, automotive, and industrial applications. In the mobile and consumer markets, Princeton Optronics VCSELs boast benchmark power efficiency and accurate control of beam divergence. When used in automotive and industrial applications, Princeton Optronics says its high power pulsed lasers and laser arrays can operate at high temperatures.
AMS points out that the adoption of VCSELs is expected to accelerate in optical sensor solutions for the Human Machine Interface (HMI). Furthermore, AMS notes that broader adoption of 3D sensing for mobile applications could add momentum to market growth for VCSELs in the coming years.
Princeton Optronics, a 37-person company which is headquartered in Princeton, New Jersey USA, runs an outsourced high volume supply chain with partners in Taiwan, the U.K., and the U.S. The profitable firm has an annual revenue run-rate of about USD $10 million.
The transaction includes an upfront cash consideration of USD $53.3 million. Additionally, AMS agreed to give substantial cash earn-out payment related to 2017 and 2018 revenues, with a possible maximum earn-out value of USD 75 million. The companies expect to close the transaction within six months, and it is subject to certain approvals and the occurrence of certain conditions with the sellers that the agreement defines.
Alexander Everke, CEO of ams, commented, “Princeton Optronics is a strategic partner to ams/Heptagon for optical sensing products already so we see a range of potential future synergies from this exciting combination.” Everke said, “Leveraging this portfolio ams can now design and manufacture the most complete and differentiated optical solutions for future growth areas like mobile 3D sensing and imaging or automotive autonomous driving.”