(Hong Kong – 1 Nov, 2016) The Board of Directors (“the Board”) of Solomon Systech (International) Limited ("Solomon Systech") (HKSE: 2878) is pleased to announce that it has entered into an asset purchase agreement as well as a product purchase and sale agreement with Microchip Technology Incorporated ("Microchip") (NASDAQ: MCHP) to purchase from it advanced mobile touch technology assets and semiconductor products for an aggregated consideration of US$23 million in cash. The transactions are subject to fulfillment of certain customary closing conditions.
Under the asset purchase agreement and the product purchase and sale agreement, Solomon Systech has received certain maXTouch® semiconductor products, and a license to sell certain maXTouch® semiconductor products and derivatives, as well as to use the design database and a portfolio of over 500 patents, to serve customers in the mobile touch market. These mobile touch technology assets and semiconductor products are renowned in the touch controller market, with widespread applications in mobile phone, tablet and pad segments. maXTouch® technology is leading, in particular, in the flexible OLED touch controller market.
"The purchase deal is a strong strategic fit to Solomon Systech and aligns with our development strategy, as mobile touch is one of our core business areas,"said Dr. Yeh Tsuei Chi, Chief Executive Officer of Solomon Systech, "Advanced mobile touch technologies, especially integrated touch display (“TDDI”) and flexible OLED display, are anticipated to have strong growth potential. Addition of these innovative and high-performance display technologies and market-proven mobile display solutions will greatly strengthen our market positioning, broaden and differentiate our product portfolio, facilitate customer reach and drive business growth. It will also significantly strengthen our technological competency and accelerate future pace of innovation."
Mr. Li Rongxin, Chairman of Solomon Systech (International) Limited said, "The Group is most excited to gain access to these valuable technology assets which are expected to further boost the Group’s overall competitiveness and growth in the mobile touch business area, thereby creating value for the shareholders."