SAN JOSE, Calif. Japan's Sumitomo Chemical Co. has acquired Cambridge Display Technology (CDT) of the U.K., a developer of technologies based on polymer organic light emitting diodes (P-OLEDs).
Under the merger agreement, Sumitomo
Chemical will acquire all outstanding shares of CDT common stock at a price of $12 per share in cash, for an aggregate purchase price of approximately $285 million.
David Fyfe, chairman and chief executive of CDT, said the deal would propel the company's technology into bigger markets. ''I believe that the acquisition of CDT by
Sumitomo Chemical will significantly enhance the prospects for P-OLED technology adoption, especially as P-OLED is looking ever more likely to become the next mainstream display technology,'' he said in a statement.
CDT and Sumitomo Chemical have developed a close relationship since Sumitomo acquired a license to certain IP from CDT in 2001, culminating in the formation of a joint venture in 2005 to develop, manufacture and sell P-OLED materials to CDT licensees and others.
Completion of the merger is subject to CDT stockholder approval and other customary closing conditions. The acquisition is expected to close during the third or fourth quarter of 2007.