SummitView consortium agrees $639m take private of ISS
A consortium led by Chinese GP SummitView Capital has agreed to buy NASDAQ-listed semiconductor manufacturer Integrated Silicon Solution (ISS). The deal values the company at approximately $639.5 million.
The consortium also includes eTown MemTek - a R&D company majority-owned by E-Town Capital, a unit of Chinese industrial Beijing E-Town - and two investment firms, semiconductor-focused Hua Capital and Huaqing Jiye Investment Management. They will acquire all outstanding shares in ISS at $19.25 apiece, according to a regulatory filing.
As part of the transaction, ISS's Taiwan operations will be restructured - and some assets sold off - in order to comply with local regulations regarding mainland Chinese investment in Taiwan. The deal still requires shareholder and regulatory approval.
ISS supplies high performance integrated circuits for use in the automotive, communications, industrial and digital consumer sectors. Its primary products are SRAM and DRAM cells, although the company also manufactures flash memory cells and analog and mixed signal circuits.
ISS is based in Silicon Valley and has offices in Taiwan, Japan, Singapore, China, Hong Kong, India, South Korea and Europe. The company outsources component manufacturing to a string of wafer foundries such as Taiwan Semiconductor Manufacturing International (TSMC), Hynix, Vanguard and Semiconductor Manufacturing International (SMIC).
Customers for ISS's end products include Panasonic, Hyundai, Philips, Visteon, Alcatel-Lucent, Cisco, Huawei Technologies, Motorola, Nokia, General Electric, Honeywell, Mitsubishi, Lenovo, Samsung, Sony, and LG. Asia accounts for around two thirds of total sales.
The company reported net sales of $328.9 million for the year ended September 2014, up from $307.6 million for the preceding 12 months. Net income rose from $17.5 million to $23.3 million over the same period.
Founded in 2011 and headquartered in Shanghai, SummitView invests in integrated circuits, mobile internet, cleantech, biopharmaceuticals and media-related assets. It manages several funds, most recently teaming up with the Shanghai government to launch a RMB10 billion ($1.7 billion) vehicle that backs semiconductor manufacturers.
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