Shanhai Capital to acquire US VC-backed Analogix
Beijing Shanhai Capital Management has led a consortium of investors to acquire US-based microchip manufacturer Analogix Semiconductor for more than $500 million.
Participants in the consortium other than Shanhai were not identified, though according to a release China Integrated Circuit Industry Investment Fund will become an LP in Shanhai's fund as part of the deal. The transaction is expected to close in late 2016, subject to regulatory approval.
Analogix manufactures high-speed processors for next-generation displays used in mobile devices, virtual and augmented reality hardware, and other advanced electronic products. Its products are used by prominent electronics manufacturers such as Apple, Samsung and Lenovo. The company is headquartered in California, with engineering operations located in Beijing; its venture backers include DCM Ventures and Globespan Capital Partners.
Shanhai plans to help Analogix enter high-growth global markets and support the company's innovation and engineering competencies. The firm hopes to take the company public in China in the near future.
A number of US electronics firms have become targets of Chinese companies in recent years, often with PE backing; however, regulatory approval has proven a difficult hurdle for many of these deals to overcome. Earlier this year Tsinghua Unigroup abandoned its plan to invest in Western Digital after the Committee on Foreign Investment in the US (CFIUS) decided to launch a review into the transaction, and Fairchild Semiconductor turned down a $2.6 billion take-private bid from China Resources Microelectronics and Hua Capital due to concerns about CFIUS approval.
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