C-MAC MicroTechnology Divests its Frequency Control Products Business to Rakon
February 11th, 2007: C-MAC MicroTechnology, the leading high reliability electronics specialist, headquartered in the UK, today announced that it has divested its FCP (Frequency Control Products) division to Rakon, a producer of performance quartz products and crystal oscillators, which is listed on the New Zealand Exchange (NZX). This strategic sale will further enable C-MAC to exploit the significant market share growth that has already been achieved over the past year in its core business - the design and manufacture of high reliability hybrid microelectronics solutions.
At the beginning of 2006 the decision was taken to establish FCP as a separate business division within C-MAC MicroTechnology. This strategic restructuring was supported by increased investment in key areas such as new product development, expansion of the sales channel and increased expenditure on marketing activities. The result was four straight quarters of profitability with revenue growth at double the market rate.
The transformation of the FCP business into a successful double digit growth division led to an acquisition approach by Rakon for the FCP unit. The divestiture, which represents approximately one quarter of the business, consists of C-MAC MicroTechnology’s two FCP manufacturing facilities in Lincoln (UK), and Argenteuil (France). In addition, the divestiture includes C-MAC’s engineering and development facility in Harlow UK, plus its sales and distribution centres in Shenzhen (China), Durham (USA) and Crewkerne (UK).
C-MAC MicroTechnology’s long-term strategic growth plans centre upon the high reliability hybrid microelectronics design and manufacturing business from its major internationally located facilities. The company will focus on automotive, aerospace and defence electronics and will additionally engage with specialist High-reliablity Industrial/ medical electronics applications. This divestiture will enable C-MAC MicroTechnology to build on the growth it is achieving in this business. A number of initiatives have been put in place to help support this continued growth including a significant increase in both R&D and manufacturing investment, which will build upon core technology skills in high frequency, high power electronics design. This will be supported by C-MAC MicroTechnology making its own strategic acquisitions in the near future.
Indro Mukerjee, C-MAC’s CEO, said: “Turning around the FCP business into a profitable, independent part of the C-MAC MicroTechnology group was one of our key strategic aims and we are pleased to have served our employees, customers and shareholders through our actions and results. Our core business moving forward is the design and manufacture of high reliability hybrid microelectronics based systems and products and that is where we have chosen to focus. The divestment will enable us to further invest in key areas of technology such as our advanced RF and Microwave Group where we are developing a range of exciting products to exploit increased penetration of the automotive, aerospace and defence electronics markets. We are also actively evaluating strategic acquisitions, which will support this growth.”
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Notes for Editors:
Headed by Indro Mukerjee, C-MAC MicroTechnology is the world leader in the design and manufacture of high reliability hybrid microelectronics solutions. We primarily focus on the automotive, aerospace and defence electronics sectors as well as specialist High-reliablity Industrial and medical electronics applications. Our head office is in Wooburn Green, UK, and we have design and manufacturing facilities in the UK and internationally with dedicated sales and customer support teams throughout Europe and the USA.
C-MAC MicroTechnology offers unrivalled expertise in the design and manufacture of advanced high reliability hybrid microelectronics systems. We specialise in advanced thermal management, high power and high frequency electronic solutions, which are often required to operate in severe environments or extremely confined spaces. Our production sites operate to very high levels of quality including certification to ISO TS 16949 and MIL-PRF-38534.Our process technologies include thick-film printing on ceramic and other substrates, surface-mount hybrid circuits, DC/DC power modules, direct-attach flipchip, low-temperature cofired ceramic (LTCC), chip-on-board (COB), multichip module (MCM) assemblies and PCB assembly. These manufacturing resources are complemented by an integrated design-to-test service encompassing ASIC design as well as analogue, digital, RF, mixed-mode and thermal simulation. Through our independently accredited test house facility, we can carry out product qualification and material evaluation to internationally recognized standards.
For further information please contact:
Scott McLean / Mairi Drysdale
Hotwire
0207 608 2500
scott.mclean@hotwirepr.com / mairi.drysdale@hotwirepr.com
