Tessera Tech (TSRA) to Acquire Vista Point Assets from Flextronics (FLEX) in $23M Deal
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Tessera Technologies, Inc. (Nasdaq: TSRA) announced that its wholly-owned subsidiary, DigitalOptics Corporation, has agreed to acquire certain assets of Vista Point Technologies, a Tier One qualified camera module manufacturing business, from Flextronics International Ltd. (NASDAQ: FLEX).
DOC will pay approximately $23 million in cash, subject to certain adjustments and costs at closing, for certain assets of Flextronics’s camera module business located in Zhuhai, China, along with the equity interests of a wholly-owned foreign enterprise that will own those assets (together, the “Zhuhai Camera Module Business”). The transaction, which is expected to close in the third quarter, if not sooner, includes existing customer contracts and a lease to an approximately 135,000-square-foot facility. DOC anticipates that the business will have a capacity to manufacture approximately 50 million camera module units per year.
Under the agreement, DOC will reimburse Flextronics for certain transaction expenses, taxes and inventory, the amounts of which will be determined at closing. The transaction also includes an intellectual property assignment and license agreement, and a transition services agreement. DOC intends to offer employment to a portion of the existing work force of the Flextronics camera module business in Zhuhai, China.
The transaction is subject to various closing conditions, including necessary approvals from the appropriate PRC governmental authorities.
The Company’s financial advisor on the transaction was GCA Savvian Advisors LLC, and its legal advisor was Latham & Watkins LLP.
DOC will pay approximately $23 million in cash, subject to certain adjustments and costs at closing, for certain assets of Flextronics’s camera module business located in Zhuhai, China, along with the equity interests of a wholly-owned foreign enterprise that will own those assets (together, the “Zhuhai Camera Module Business”). The transaction, which is expected to close in the third quarter, if not sooner, includes existing customer contracts and a lease to an approximately 135,000-square-foot facility. DOC anticipates that the business will have a capacity to manufacture approximately 50 million camera module units per year.
Under the agreement, DOC will reimburse Flextronics for certain transaction expenses, taxes and inventory, the amounts of which will be determined at closing. The transaction also includes an intellectual property assignment and license agreement, and a transition services agreement. DOC intends to offer employment to a portion of the existing work force of the Flextronics camera module business in Zhuhai, China.
The transaction is subject to various closing conditions, including necessary approvals from the appropriate PRC governmental authorities.
The Company’s financial advisor on the transaction was GCA Savvian Advisors LLC, and its legal advisor was Latham & Watkins LLP.
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