03 Jul 2012
Wireless technology firm Toumaz is to buy digital chip maker Frontier Silicon for up to £32.3 million as part of an effort to expand its footprint in electronic engineering.
Toumaz, which is based in Abingdon, Oxfordshire, makes low-power, high-performance wireless solutions for a range of markets including healthcare and consumer electronics.
Frontier is headquartered in London and supplies semiconductor, module and software solutions for digital radio and connected audio systems.
Alongside the acquisition, Toumaz has also announced the conditional placing of 285.6 million new ordinary shares at a placing price of 10.25 pence, raising £29.25 million before expenses.
Under the Silicon buy, Toumaz will make an initial consideration of £27.06 million in cash, with a further £5.2 million to be paid dependent on future performance.
It said the acquisition brings it an "important electronic engineering resource", as Frontier has research hubs in the UK, Hong Kong and China.
The move will help position Toumaz as a "genuine total solution provider" given its healthcare, radio and wireless chip technologies and Frontier's expertise in semiconductor, module and software systems.
Frontier also has a significant customer base Toumaz will tap into, with clients including Bang & Olufsen, Bose, JVC, Panasonic, Philips and Pure.
Anthony Sethill, Toumaz chief executive officer, said the acquisition was in line with the firm's strategy of providing low-power wireless products across the healthcare, fitness and consumer electronics sectors.
"Bringing these two innovative UK technology companies will enable the enlarged group to exploit the strengths and opportunities of both businesses," he said.
"Our wireless solutions have huge potential and combined with the software systems, commercial expertise and tier one customer access of Frontier, will create a significant total solution provider for the wireless communications market."
Toumaz is split into two businesses: Toumaz Healthcare, which covers health technology solutions, and Toumaz Microsystems, which covers the design and development of semiconductor chips and solutions.
Frontier was established in 2001 as a fables semiconductor company and is now one of the world's leading suppliers of semiconductor, module and software solutions.
The firm has around 130 staff, 70 per cent of whom are engineers, with research and development centres in Cambridge, Ireland and Hong Kong.Submitted by: