REG - CML Microsystems PLC - Disposal of Storage Division

CML MicrosystemsAnnouncement

10/12/2020 07:01

RNS Number : 1399I
  
CML Microsystems PLC
  
10 December 2020
  
 

 
CML Microsystems Plc
("CML" or the "Group")
Disposal of Storage Division for US$49m
CML to focus exclusively on the communications sector
CML Microsystems Plc (CML.L) announces that it has entered into a definitive agreement to divest of Hyperstone, the Group's storage division ("Storage Division"), to Swissbit, a specialist producer of industrial-grade data-storage and embedded IoT solutions, for US$49 million in cash (the "Disposal").
The Disposal reflects a strategic decision made by the Board to refocus the Group exclusively on the global Communications market. The Board believes the communications sector represents a large and high growth market opportunity for CML, which has been significantly enhanced through the acquisition of PRFI Limited in March 2020. The Disposal further enables CML to direct its efforts, including research and development spend, on capturing the exciting growth opportunities within the wireless communication markets, leveraging its standing as a key supplier to many of the world's Tier 1 equipment manufacturers.
Under CML's ownership, the Storage Division has grown to become a major player within the industrial solid state storage market, supplying some of the world's largest OEM's with class-leading solutions. The Board would like to thank the management and employees of Hyperstone for their hard work, dedication and innovative approach over the years and feels confident that they will benefit from a new ownership structure that better aligns with Hyperstone's growth objectives.
The proceeds from the Disposal will provide the Group with the financial flexibility to maximise its future growth potential.  The Disposal is expected to close in the first few weeks of 2021, subject to obtaining necessary regulatory approvals and other customary closing conditions.
 



CML Microsystems Plc
Chris Gurry, Group Managing Director
Nigel Clark, Group Chairman & Financial Director
 


www.cmlmicroplc.com

Tel: +44 (0)1621 875 500




Shore Capital
Edward Mansfield
James Thomas
Fiona Conroy - Corporate Broking
 


Tel: +44(0)20 7408 4090




SP Angel Corporate Finance LLP
Jeff Keating
 


Tel: +44(0)203 463 2260




Alma PR
Josh Royston
Caroline Forde
Robyn Fisher
 


Tel: +44 (0)7780 901979
 



 
About CML Microsystems PLC
CML designs and develops semiconductors for the industrial storage and communications markets. The Group utilises a combination of in-house and outsourced manufacturing and has trading operations in Europe, the Far East and USA. CML targets niche markets with strong growth profiles and high barriers to entry. It has secured a diverse, blue chip customer base, including some of the world's leading telecoms equipment providers and industrial product manufacturers.
The spread of its customers and products largely protects the business from the cyclicality usually associated with the semiconductor industry. Growth in its end markets is being driven by factors such as the ever increasing trend towards solid state storage devices in the commercial and industrial sectors, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial communications networks for voice and/or data communications linked to the industrial internet of things (IIoT).
The Group is cash-generative, has a net cash position and is dividend paying.
 

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