UK semiconductor materials maker IQE gained on news it had agreed to buy a unit of Kopin Corporation to enhance its product line in wireless.
Shares soared 19.66% to 35.00p after the company said it would acquire compound semiconductor epiwafer manufacturing business Kopin Wireless for $75m.
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IQE expects earnings to increased on the back of the acquisition this year. In a trading update the company projected 2012 revenues of up to £88m with earnings before interest, tax, depreciation and amortisation up to £17m and net debt of approximately £15.5m.
Drew Nelson, Chief Executive Officer of IQE, said: "This acquisition is our third key transaction in the past 12 months. It significantly enhances our scale and provides us with a highly complementary product line in the wireless space.
"The transaction marks another major step forward in our risk mitigation strategy, whilst significantly boosting our wireless market share. At the same time, it delivers excellent opportunities for additional business growth, particularly in Taiwan and from there into the Asian semiconductor market."
RD
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