SAN JOSE, Calif. International DisplayWorks Inc. (IDW) on Wednesday (March 30) announced an agreement to purchase all the outstanding stock of Three-Five System's LCD manufacturing facility and business in Beijing, China.
Three-Five Systems Beijing is a wholly owned subsidiary of Three-Five Systems Inc. Closing of the transaction, which is subject to normal conditions, is expected to occur within two weeks.
The assets of Three-Five Systems Beijing include a 56,000-square-foot facility, manufacturing equipment, $2 million in qualified inventory, and a $675,000 VAT credit.
IDW (Rocklin, Calif.) intends to fund the entire transaction through its credit facility and the cash generated from operations. "This exciting announcement accelerates our revenue growth and our ability to reach critical mass in the TFT business by six to nine months through a comprehensive product portfolio for mobile devices," said Tom Lacey, IDW's chairman and chief executive, in a statement.