Aixtron to consider acquisitions and JVs to broaden its technology portfolio - exec
Aixtron [FRA:AIXA], a German provider of deposition equipment for the semiconductor industry, would consider acquisitions to broaden its technology portfolio, Vice President Corporate Business Development & Strategy Johannes Froehling said.
Aixtron would consider full takeovers, stake acquisitions, JVs and partnerships and make decisions case-by-case, Froehling said. He cautioned that M&A is only a part of the company’s strategy and the focus is organic growth. Aixtron invests between EUR 55m and EUR 65m a year in R&D, he said.
Screening the market for potential M&A opportunities is an ongoing management task, but there is nothing concrete in the pipeline, Froehling said. To identify potential M&A candidates, Aixtron builds on its strong network in the semiconductor area and related sectors, he explained. He mentioned that the company also has an in-house team scouting the market for interesting technologies.
Aixtron looks at attractive technologies that might strengthen or expand its existing portfolio, the executive said. Deals purely focused on geographical expansion are unlikely, he added, as Aixtron already has a global presence.
The company has developed technologies in the fields of compound semiconductors (MOCDV), organic electronics (OVPD/PVPD/TFE), carbon nanostructure (PECVD), silicon semiconductors (ALD/MOCVD), according to a company presentation.
Aixtron’s last deal was the April 2015 acquisition of Silicon Valley-based PlasmaSi Inc. The candidate was identified through the company’s network and the deal was managed internally, the executive said.
Ssize of the target is not a key decision criterion for M&A deals, Froehling said. Financing of a potential deal will be put in place "when the time comes," he said.
Aixtron finances its growth with own resources and has no plans for a capital increase, the executive said. At the end of June 2015 it had a cash position of EUR 255.4m.
For 2015 the company forecasts revenues of approximately EUR 190m. In 2016 the revenues are expected to remain in line with 2015 and should grow from 2017, the executive said.
In the first nine months of 2015, 73% of Aixtron revenues were generated by equipment while the sale of spare parts accounted for the reminder of the turnover. The main contributor to sales was LED segment with 28%, followed by silicon with 25%, optoelectronics with 22%, power electronics with 17% and others with 8%.
Aixtron’s main market is Asia, which generated 72% of its revenues in 9M15. Europe accounted for 12% of the revenues and the Americas for 16%, according to a company presentation.
Established in 1983, Aixtron has a market capitalization of approximately EUR 393m and a free float of 93.12%.