OTC-listed Pa­rade to ac­quire as­sets of US IC firm: state­ment

The China Post - - TAIWAN BUSINESS -

Pa­rade Tech­nolo­gies Ltd. (

), a listed in­te­grated cir­cuit designer on Tai­wan’s over-the-counter (OTC, ) mar­ket, has agreed to ac­quire the mo­bile touch IC as­sets of a U.S. coun­ter­part, Cy­press Semi­con­duc­tor Corp.

In a state­ment re­leased Thurs­day, Pa­rade said it had de­cided to ac­quire the as­sets for US$100 mil­lion in cash, a move that is ex­pected to help strengthen its pro­duc­tion port­fo­lio.

The trans­ac­tion is sched­uled to be com­pleted in the third quar­ter of the year, Pa­rade said.

In the wake of the an­nounce­ment, shares of Pa­rade climbed 4.30 per­cent Fri­day, reach­ing NT$364.00 (US$11.74) as of 12:11 p.m., with 3.69 mil­lion shares chang­ing hands. The in­dex on the lo­cal OTC mar­ket was up 0.69 per­cent at 136.20 points.

Pa­rade is a Cay­man Is­lands in­cor­po­rated firm that launched a pri­mary list­ing on the lo­cal OTC mar­ket in Septem­ber 2011. It is head­quar­tered in Sil­i­con Val­ley and has op­er­a­tions and Hong Kong.

An­a­lysts said the ac­qui­si­tion is ex­pected help Pa­rade ex­pand rapidly be­yond the sup­ply of video dis­plays and in­ter­face ICs for note­book com­put­ers and into ICs for mo­bile de­vices.

“We be­lieve Cy­press’ lead­ing tech­nol­ogy and un­matched IP port­fo­lio in touch-sens­ing will pro­vide us with im­me­di­ate growth op­por­tu­ni­ties, in­creas­ing our scale and di­ver­si­fy­ing our rev­enue and cus­tomer base,” Pa­rade CEO Jack Zhao ( ) said in the state­ment.

With the ac­qui­si­tion, Pa­rade said, it is ex­pected to gain 150 patents re­lated to mo­bile touch ICs and ob­tain cross-li­cens­ing rights for an ad­di­tional 180 patents.

Af­ter the ac­qui­si­tion, Pa­rade is likely to start com­pet­ing against its Tai­wanese ri­vals such as No­vatek Mi­cro­elec­tron­ics Corp. ( ) and Fo­calTech Sys­tems Co. (

) for or­ders from Ap­ple Inc. and Chi­nese mo­bile de­vice ven­dors, an­a­lysts said.

in Tai­wan, China

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