IQE buys GaN startup NanoGaN

SAN JOSE, Calif. -- In a move to expand its portfolio, IQE plc has acquired NanoGaN Ltd., a developer of gallium nitride (GaN) technology.

The consideration for the acquisition of NanoGaN is for up to 3.6 million pounds ($5.76 million), based on the achievement of milestones relating to the commercialization of the intellectual property. The initial consideration of 0.4 million pounds will be settled by the issue of new shares and cash. IQE has the option to settle the future milestone payments in either shares or cash.

NanoGaN (Bath, England) has established a range of processes and key intellectual property (IP) relating to GaN materials and devices. This includes its proprietary ''Nanocolumn Technology'' for producing GaN substrates. This is critical for manufacturing blue and green semiconductor lasers and ultra high brightness LEDs for solid state lighting (SSL).

IQE will assist in completing the development of commercial products and will thereafter begin the transfer of the technology to its high volume production facilities where it is expected to begin generating sales in 2010.

Completion of the acquisition will around Oct. 7.