Kopin and IQE strike $75M deal
IQE to buy chunk of Kopin's business for $75 million
TAUNTON, Mass. (AP) -- Kopin Corp. said Thursday that it is selling a chunk of its transistor business to UK-based semiconductor wafer company IQE PLC for $75 million.
The all-cash deal will allow Kopin to focus solely on its development of Golden-I, its mobile-communications platform, and its microdisplay products.
The deal includes Kopin's III-V assets, which represent its specialty transistor business. Those are part of circuits used in smartphones and other mobile communications devices. The business generated revenue of about $44 million during the first nine months of 2012.
Under the terms of the sale, Kopin will receive an up-front payment of $60 million and will receive the remaining $15 million in January 2016 on the three-year anniversary of the deal. Included in the deal is a manufacturing facility in Taunton, Mass., and Kopin's investment in Kopin Taiwan Corp., a subsidiary in which it has a 90 percent stake.
Kopin said it expects the deal will close next week.
Kopin's shares rose 18 cents, more than 5 percent, to close at $3.70 Thursday.
