Parade Technologies, Ltd. (Taipei Exchange: 4966.TWO), a leading
supplier of video displays and interface ICs headquartered in Silicon
Valley, and Cypress Semiconductor Corp. (NASDAQ:CY), a supplier of
high-performance ICs for embedded systems, today announced that they
have entered into a definitive agreement under which Parade will acquire
Cypress’s TrueTouch® Mobile touchscreen business for an
aggregate acquisition price of US$100 million in cash.
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Post-acquisition, Parade will provide TrueTouch® solutions to
mobile customers and expand into other consumer-oriented segments.
Markets to be served by Parade will include smartphones, tablets,
notebooks/PCs, monitors, wearable technology, GPS systems, digital
cameras, and certain industrial segments. Leveraging its deep knowledge
and customer relationships, Cypress will continue to provide TrueTouch®
solutions to its automotive and home appliance customers and CapSense®
button-replacement solutions to its mobile customers.
Parade believes that this acquisition will substantially expand its
addressable market. Combining Parade’s leadership position in Embedded
DisplayPort (eDP) timing controllers with Cypress’s state-of-the-art
technology in capacitive touch-sensing, Parade expects to provide
platform-level solutions with a complete portfolio of products for its
display customers. The acquisition will also improve the operational
efficiency of the industry supply chain.
“We believe Cypress’s 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,”
said Jack Zhao, Chief Executive Officer of Parade. “More importantly,
the combination of two technology leaders will enable Parade’s roadmap
for display and touch integration solutions in mobile display.”
“Mobile capacitive touchscreen solutions are increasingly being
integrated directly into the display system,” said Hassane El-Khoury,
Executive Vice President of Cypress’s Programmable Systems Division and
Software. “Parade’s advanced display solutions are truly best in class.
Its relationships with Tier 1 PC and consumer electronics manufacturers
make it an excellent choice to continue to provide our customers with
advanced technology and product roadmaps that the industry requires.”
Cypress’s TrueTouch capacitive touchscreen solutions deliver robust
performance and a natural user experience in a broad range of
challenging environments with best-in-class waterproofing, noise
immunity, passive stylus and glove-touch modes, as well as proximity
sensing and face detection. The company’s unmatched IP portfolio is
backed by hundreds of capacitive touch-sensing patents and includes
true, single-layer sensor solutions with Cypress’s Single-Layer
Independent Multi-touch (SLIM®) sensor for dramatically
reduced touchscreen costs.
Parade intends to fund the transaction with $100 million cash on hand.
The transaction, which is subject to customary closing conditions, is
expected to close during the third quarter of 2015. Lazard Frères & Co.
LLC served as financial advisor and Morgan Lewis & Bockius LLP served as
legal counsel to Parade. Wilson Sonsini Goodrich & Rosati acted as legal
counsel to Cypress.
Press Conference
Parade Technologies will host a press conference at Taipei Exchange on
Thursday, June 11 at 12:30 a.m. PDT (3:30 a.m. EDT and 3:30 p.m. Taipei
time), solely to discuss details of the transaction. Analysts or media
representatives are welcome to join. The accompanying presentation
relating to the transaction will be available in the “Investor
Relations/Financial Announcements” section of Parade’s website at www.paradetech.com.
About Parade Technologies
Parade Technologies (Taipei Exchange: 4966.TWO) is a leading fabless
supplier of mixed-signal ICs for a variety of popular display and
high-speed interface standards used in computers, consumer electronics
and display panels. Parade’s portfolio of IC products serves the growing
demand for DisplayPort™, eDP™ (Embedded DisplayPort), HDMI™, SATA, and
USB ICs for display, storage and interface applications.
Parade leverages its close relationships with market-leading Tier-1 OEMs
to develop ICs that provide unique system capabilities. Many of the
company’s devices integrate proprietary technologies that offer superior
system signal integrity, advanced system integration and enhanced power
efficiency. As a result of the company’s “Standard-plus” design
philosophy, Parade ICs have been designed into products offered by
nearly every leading computer and display vendor worldwide.
About Cypress
Cypress (NASDAQ: CY) delivers high-performance, high-quality solutions
at the heart of today’s most advanced embedded systems, from automotive,
industrial and networking platforms to highly interactive consumer and
mobile devices. With a broad, differentiated product portfolio that
includes NOR flash memories, F-RAM™ and SRAM, Traveo™ microcontrollers,
the industry’s only PSoC® programmable system-on-chip
solutions, analog and PMIC Power Management ICs, CapSense®
capacitive touch-sensing controllers, and Wireless BLE Bluetooth®
Low-Energy and USB connectivity solutions, Cypress is committed to
providing its customers worldwide with consistent innovation,
best-in-class support and exceptional system value. To learn more, go to www.cypress.com.
Parade Technologies and the Parade logo are trademarks of Parade
Technologies, Ltd. All other trademarks are property of their owners.
Cypress, the Cypress logo, TrueTouch, SLIM, PSoC and CapSense are
registered trademarks and F-RAM and Traveo are trademarks of Cypress
Semiconductor Corp. All other trademarks are property of their owners.
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