LONDON Toumaz Holdings Ltd. (Abingdon, England), a publicly-owned company formed to exploit low-power use of silicon transistors operating in the sub-threshold region of operation, has announced plans to acquire Future Waves, a spin-off formed by Toumaz in 2005.
Toumaz said it would pay ٤.43 million (about $9.4 million) in shares for the 76.8 percent of Future Waves that is does not currently own. Future Waves is a developer of mobile TV and digital radio ICs made using the Toumaz sub-threshold mixed-signal technology, which it makes use of under license.
Future Waves shareholders will receive 16.22 new ordinary shares in Toumaz Holdings for each ordinary Future Waves share. To cover this Toumaz has said it will issue 91,836,779 new ordinary shares.
The companies first chip Fenix-1 is in production and has developed a prototype of a next-generation multi-standard RF chip. However, the company made a loss of approximately $5.5 million in 2008, according to Toumaz. It has offices in Taiwan, Hong Kong, Korea and the UK.
The argument offered by Toumaz for the acquisition of the loss-making Future Waves is that after a merger, R&D resources can be more efficiently and cost effectively than if each business continued to operate independently. Toumaz said that both Toumaz and Future Waves have "cornerstone" customers and that the outlook for both companies is "positive."
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