Murata Manufacturing Co., Ltd. (Head office: Kyoto, Japan, hereinafter “Murata”) announces that on October 10, 2011 (local time) it entered into a share sale and purchase agreement with all shareholders of VTI Technologies Oy (Head office: Vantaa, Finland, hereinafter “VTI”) to acquire all the outstanding VTI shares (hereinafter “this acquisition”).
This acquisition is expected to close within six (6) months, pending approval under applicable laws and regulations, and confirmation of the conditions stipulated in the share sale and purchase agreement. Following the completion of this acquisition, VTI will become a wholly owned subsidiary of Murata.
1. Purpose of this acquisition
VTI, established in 1991, is a global leading player specialized in MEMS (Micro Electro Mechanical Systems) technology. The company uses proprietary 3D MEMS technology to develop and manufacture silicon-based capacitance sensors for the automotive industry and medical applications. VTI’s products are used to measure acceleration, inclination, shock, vibration, angular velocity, and pressure. In particular, VTI is the world’s top manufacturer of low-G accelerometers for the automotive industry and cardiac rhythm management (CRM) systems.
MEMS is key technology for reducing device size, increasing accuracy and reliability, extending service life, increasing strength, achieving lower prices, and reducing power consumption in a variety of end markets. The MEMS market is rapidly expanding, including in a wide range of industrial and consumer applications such as automotive, information and communications equipment, energy, life care, and biotechnology.
By adding VTI’s market leading 3D MEMS products to Murata’s existing sensor product lineup, Murata aims to achieve synergies that will help to strengthen and expand its sensor business.
Murata has a strong presence in the consumer applications market, whereas VTI has focused on building a business base in the automotive industry and medical applications. This acquisition will therefore expand Murata’s development and sales abilities to achieve continued growth in the future.
2. Acquisition structure
The transaction is all cash, and Murata Electronics Europe B.V. (Head office: Hoofddorp, the Netherlands, hereinafter “MEH”), Murata’s wholly owned subsidiary, will be the acquiring vehicle.
3. Acquisition amount
Murata has agreed to acquire 100% of VTI for an enterprise value of approximately 20 billion yen (195 million euro). The transaction will be funded out of MEH’s cash reserves.
4. Completion
This acquisition is expected to close within six (6) months, pending approval under the Antitrust Acts and other applicable laws and regulations of each country, and confirmation of the conditions stipulated in the share sale and purchase agreement.
5. Impact on financial results
This acquisition is expected to have a negligible impact on Murata’s consolidated results in the near-term.