AEM Holdings announces the purchase of Afore Oy for S$12.3 million
Category: #world  By Saipriya Iyer  Date: 2018-02-01
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AEM Holdings announces the purchase of Afore Oy for S$12.3 million

AEM Holdings Limited has apparently declared its plans to acquire Afore Oy, a Finnish MEMS (Micro-Electro-Mechanical Systems) test service provider for nearly 12.3 million Singapore dollars. The company sources have stated that the acquisition will help AEM expand its product & consumer portfolio across the global semiconductor business. The deal is expected to be in terms of shares & cash. Reports state that the valuation is bifurcated into 8.08 million Singapore dollars in cash and over eight lakh new shares of AEM estimated at 4.24 million Singapore dollars.

Post the announcement of the deal, the issued price of the shares under consideration exhibited a 1.6% discount as compared to its closing price of 4.97 Singapore dollar yesterday. Reports state that the consideration shares representing approximately 1.3% of AEM’s large share capital are going to be issued to founder of Afore Oy, while other investors of Afore will receive cash for the shares.

Industry experts have projected that the purchase of Afore will help AEM to grow across the rapidly emerging sectors such as mobile, autonomous driving, robotics, and IoT. Reportedly, the acquisition will also help the firm widen its customer base across the globe with its new service offerings, adding value to its existing business of RF test & measurement devices and logic IC handlers.

Analysts view the merger deal to benefit both Afore and AEM substantially due to the integration of the expertise and global presence in a single business unit. Further, analysts have even forecast that the pact will help achieve cost synergies for both the giant organizations. While Afore may be able to provide high performance MEMS test services to AEM for expanding its wafer level chip scale packages business, AEM’s production & supply chain will assist Afore Oy in enhancing its production capacities.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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