MEMSCAP buying JDSU's Cronos MEMS unit
31 July 2002 -- Grenoble-based MEMSCAP, which supplies components and design and manufacturing services based on micro-electromechanical systems (MEMS), is acquiring most of the business and assets of San Jose-based JDS Uniphase's Cronos MEMS business unit.
31 July 2002 -- Grenoble-based MEMSCAP, which supplies components and design and manufacturing services based on micro-electromechanical systems (MEMS), is acquiring most of the business and assets of San Jose-based JDS Uniphase's Cronos MEMS business unit. This is in exchange for 10,500,000 common shares initially, plus 6,500,000 additional shares contingent on Cronos achieving certain revenue targets over a two and a half year period. Cronos was originally a commercial spin-off of MCNC before acquisition acquired by JDSU in April 2000.
MEMSCAP will be the exclusive supplier to JDSU of MEMS chips for MEMS-based products for a period of not less than three years. MEMSCAP will provide on-going access to MEMS technology as well as a secure source for the continued availability of MEMS optical products. JDSU has provided MEMSCAP with initial purchase commitments for products and services. MEMSCAP will also gain access to leading systems companies as well as most active optical MEMS product vendors.
The acquisition provides MEMSCAP with a fully operational unit for design and foundry services of MEMS and optical MEMS. MEMSCAP expects technical and operating efficiencies through integration of Cronos into its manufacturing facility in Bernin. It will provide MEMSCAP with several active contracts and key customer relationships, a strong base of manufacturing equipment and an extensive intellectual property portfolio encompassing 27 existing patents and 27 patent applications. Cronos also has a Multi-User MEMS Processes (MUMPS) foundry service, which is currently being expanded from polysilicon-based technology to metal and silicon-on-insulator (SOI).
"This acquisition strengthens our presence in North America," said president and CEO Jean-Michel Karam. "JDS Uniphase is assured of access to state-of the-art MEMS technology and a reliable and stable supply of MEMS-based optical products," said JDSU's VP of Technology Strategy Karen Markus.