German firm Aixtron SE reported that it plans to sell the ALD and CVD memory product line of its U.S. subsidiary Aixtron, Inc. of Sunnyvale, California to Eugene Technology Inc., a wholly owned U.S. subsidiary of South Korean company Eugene Technology Co., Ltd. Aixtron, Inc. says it will continue to provide sales and support for Eugene Technology’s U.S. businesses and aid the company in its thin film encapsulation (TFE) activities.
Eugene Technology agreed to purchase the ALD/CVD memory product line for between $45 million and $55 million in cash at closing. The purchase includes inventory and other prepaid assets. Due to ongoing business, the value of the purchase will be determined at the time of the transaction’s close.
The deal, which is expected to close during the second half of 2017, is subject to regulatory approvals, including the approval of the Committee on Foreign Investments in the United States (CFIUS). Aixtron SE’s management predicts that this deal will not affect the full year 2017 guidance with projected order intake and revenues including the core business and the ALD/CVD business up to the date of sale between EUR 180 and 210 million.