ASM Pacific Technology Limited (ASMPT) and Mycronic Group (Mycronic) signed a definitive agreement in which ASMPT will acquire Mycronic’s subsidiary Automation Engineering, Inc. (AEi) in an all-cash transaction.
The transaction between ASMPT and Mycronic has been approved by the Board of Directors of each company, subject to the satisfaction of customary closing conditions and regulatory approvals.
Established in 1990 and based in Tewksbury, Massachusetts, USA, AEi is widely recognised as a leading company in the automotive camera active alignment market, having benefitted especially from significant and sustained demand for cameras in ADAS (Advanced Driver Assistance Systems).
The acquisition of AEi is consistent with ASMPT’s strategy of pursuing sustained, profitable growth via expansion into promising adjacent markets. First, the acquisition provides ASMPT a significant presence in the automotive camera assembly and test solutions space - an addressable market of approximately USD 60m in 2021.
Second, the acquisition enables ASMPT to offer total solutions for automated and scalable end-to-end camera module assembly to a significantly expanded served market that encompasses global Tier 1 and 2 automotive component providers.
Third, the acquisition will enable the pursuit of new adjacent market opportunities in security surveillance, drones and LiDAR, which will expand the addressable market to around USD 460m in 2025. AEi will in turn be able to tap on ASMPT’s extensive global sales and fulfilment networks, particularly in Asia, to capture new and emerging opportunities at a faster pace.
Finally, the collective customer base will be able to reap the rewards of ASMPT’s deep focus in integrating Industry 4.0 capabilities into its solutions, offering the potential for powerful analytics and AI capabilities to further augment the collective product line.
Taken as a whole, this broader portfolio of leading products, services, and solutions, as well as increased exposure to technology megatrends, will help support ASMPT's long-term revenue and earnings growth in turn.