AMS, an Austrian supplier of high performance sensor and analogue solutions, has signed an agreement to acquire 100 percent of the shares in VCSEL firm Princeton Optronics, in an all-cash transaction.
Headquartered in Princeton, NJ (USA) with a total of 37 employees, Princeton Optronics develops and supplies high performance VCSELs which offer specific differentiation for mobile, consumer, automotive, and industrial applications.
In the mobile and consumer markets, Princeton Optronics realises benchmark power efficiency and accurate control of beam divergence to create application benefits. In automotive and industrial, Princeton Optronics’ technology enables high temperature operation and delivers high power pulsed lasers and laser arrays which support future automotive and industrial applications. The use of VCSELs is expected to gain momentum in optical sensor solutions for the Human Machine Interface (HMI).
The company has an annual revenue run-rate of around $10 million and is profitable. The transaction includes an upfront consideration of $53.3 million in cash and a substantial cash earn-out consideration related to realised 2017 and 2018 revenues, with a potential maximum earn-out value of $75 million. The transaction is expected to close within six months and is subject to certain approvals and the occurrence of certain conditions defined in the agreements with the sellers.
Princeton Optronics operates an outsourced high volume supply chain with partners in Taiwan, the US, and the UK.
Alexander Everke, CEO of AMS, commented on the transaction: “Adding the illumination source expands AMS’ optical sensor solutions offering, with the light path optics covered by Heptagon and the light sensor including filters by AMS.
“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. 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.”