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OTC listed-Parade to acquire assets of U.S. IC firm

OTC listed-Parade to acquire assets of U.S. IC firm

Taipei, June 12 (CNA) Parade Technologies Ltd. (??), a listed integrated circuit designer on Taiwan's over-the-counter (OTC) market, has agreed to acquire the mobile touch IC assets of a U.S. counterpart, Cypress Semiconductor Corp. In a statement released Thursday, Parade said it had decided to acquire the assets for US$100 million in cash, a move that is expected to help strengthen its production portfolio. The transaction is scheduled to be completed in the third quarter of the year, Parade said. In the wake of the announcement, shares of Parade climbed 4.30 percent Friday, reaching NT$364.00 (US$11.74) as of 12:11 p.m., with 3.69 million shares changing hands. The index on the local OTC market was up 0.69 percent at 136.20 points. Parade is a Cayman Islands incorporated firm that launched a primary listing on the local OTC market in September 2011. It is headquartered in Silicon Valley and has operations in Taiwan, China and Hong Kong. Analysts said the acquisition is expected help Parade expand rapidly beyond the supply of video displays and interface ICs for notebook computers and into ICs for mobile devices. "We believe Cypress' leading technology and unmatched IP portfolio in touch-sensing will provide us with immediate growth opportunities, increasing our scale and diversifying our revenue and customer base," Parade CEO Jack Zhao (??) said in the statement. With the acquisition, Parade said, it is expected to gain 150 patents related to mobile touch ICs and obtain cross-licensing rights for an additional 180 patents. After the acquisition, Parade is likely to start competing against its Taiwanese rivals such as Novatek Microelectronics Corp. (??) and FocalTech Systems Co. (??) for orders from Apple Inc. and Chinese mobile device vendors, analysts said. Friday's buying in Parade shares largely reflected optimism toward the benefits expected from the acquisition, analysts said. (By Jackson Chang and Frances Huang)


Updated : 2021-09-17 02:09 GMT+08:00