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ams has signed an agreement to acquire 100% of the shares in Princeton Optronics, a provider of Vertical Cavity Surface-Emitting Lasers (VCSELs) in an all-cash transaction, valued at between $53 and $75 million. The transaction includes an upfront consideration of $53.3 million in cash and a substantial cash earn-out consideration related to realized 2017 and 2018 revenues, with a potential maximum earn-out value of $75 million. The deal is expected to be completed within six months, subject to required approvals.
This acquisition follows ams' July 2016 purchase of MAZeT, the Germany-based developer of color and spectral sensing systems, including multispectral devices.
Princeton Optronics develops and supplies high-performance VCSELs designed for mobile, consumer, automotive, and industrial applications.
In automotive and industrial, Princeton’s technology enables high temperature operation and delivers high power pulsed lasers and laser arrays which support future automotive and industrial applications. The use of VCSELs is expected to gain momentum in optical sensor solutions for the human-machine interface (HMI). Broader adoption of 3D sensing in mobile applications could also accelerate market growth for VCSEL light sources.
The deal announcement explained that Princeton currently operates an outsourced high-volume supply chain with partners in Taiwan, the US and the UK. Headquartered in Princeton, NJ, with 37 employees, the company has an annual revenue run-rate of around $10 million and is profitable.
