KUALA LUMPUR (May 9): JF Technology Bhd (JF Tech) on Monday (May 9) announced it is acquiring precision engineering provider Ikeda Technology (M) Sdn Bhd’s assets and business for RM4.5 million, cash.
The test interface products offered by Ikeda, which has a proven track record, with over 15 years of experience in the semiconductor industry, are complementary to the group’s existing test solution products, JF Tech said in a bourse filing.
JF Tech’s wholly-owned JF TestSense Sdn Bhd had entered into an assets and business purchase agreement with Ikeda and its shareholders See Hock Eng and Lim Chin Nyen for the acquisition. JF Tech, an innovator and manufacturer of high-performance test contacting solutions for global integrated circuit (IC) makers, expects the proposed acquisition to be completed by the second quarter of 2022.
The deal, according to JFTech’s bourse filing, includes all designs, products, intellectual property, know-how and technology owned by and used in connection with Ikeda’s business. Ikeda currently employs two employees and the business is largely helmed by See – its founder and major shareholder – and its manager, Lim.
As part of the proposed acquisition, Lim will be hired by JF TestSense as the test interface product manager for at least two years from the completion of the acquisition.
On completion of the proposed acquisition, Ikeda shall discontinue its business and after the determination of whether the cumulative revenue guarantee is met and the warranty period by Ikeda to its customers, Ikeda shall proceed to winding-up.
“Given its complementary nature with our products, we will be able to create strong synergies and expand our product range.
“In turn, we will be able to provide one-stop engineering solutions that can be validated upfront during the development stage to ensure we get it right the first time,” said JF Tech managing director Datuk Foong Wei Kuong.
The acquisition also reduces the need for JF Tech’s customers to assemble and test the product, as compared to putting together components from different solution providers, which may potentially give rise to issues, he said.
Foong added that the exercise is also part of the group’s growth drivers that would further cement its position in the semiconductor industry, as it continues to move up the value chain.
“On balance, JF Tech’s prospects remain promising underpinned by the planned growth drivers and the expanding semiconductor industry, as well as the immense increase in semiconductor content for various applications,” he said.
As at 2.36pm on Monday, JF Tech’s share price was one sen or 1.03% lower at 96 sen, bringing it a market capitalization of RM889.98 million.