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IFX - Infineon Technologies AG News Story

€32.5 1.1  3.6%

Last Trade - 07/05/21

Large Cap
Market Cap £36.82bn
Enterprise Value £40.06bn
Revenue £8.70bn
Position in Universe 35th / 1050

FACTBOX-Sensor specialist AMS closes in on lighting group Osram

Tue 12th November, 2019 12:14pm
VIENNA, Nov 12 (Reuters) - German lighting group Osram
 OSRn.DE  has urged its shareholders to back a $5 billion
takeover bid from Austria's AMS  AMS.VI  after a previous offer
at the same price failed last month to win enough backing to
    AMS has lowered the acceptance threshold to 55% and is
offering to protect jobs in Germany until the end of 2022 to try
to get the deal over the line.*:nL5N273526
    The Austrian group is best known as a supplier of facial
recognition technology to Apple  AAPL.O , while Osram's
lightbulbs were once ubiquitous in European households.
    AMS says that with the acquisition it could
create a global heavyweight in sensors and lighting products,
serving the automotive, industrial and medical industries as
well as consumer electronics.
    Below are key facts about the two companies:
    AMS AG
    AMS, formerly austriamicrosystems AG, started in 1981 as a
U.S.-Austrian joint venture backed by steelmaker Voestalpine
 VOES.VI  which wanted to diversify into semiconductors. 
    The group, based in the grounds of a castle in Austria's
Styria state, listed in Zurich in 2004. 
    AMS develops infrared sensor technology used for facial
recognition in smartphones and tablets, in autonomous driving,
factory automation and devices for computer tomography.
    Chief Executive Alexander Everke, an electrical engineer,
started his career with Osram's former parent company Siemens
 SIEGn.DE , later working for Infineon  IFXGn.DE  and NXP
Semiconductors  NXPI.O  before joining AMS in 2015.
    The group generated revenue of 1.4 billion euros ($1.54
billion), operating profit of 128 million and net profit of 10.6
million last year with a workforce of 10,000 people. Net debt
stood at 1.24 billion euros at end-June. 
    It has a market capitalisation of 3.5 billion euros.
    AMS's main revenue source is optical sensors. Its main
customer is Apple  AAPL.O , which analysts estimate accounts for
40% of group revenue.
    It has recently won Android customers, including Samsung
 005930.KS , and China's Xiaomi  1810.HK  and Huawei  HWT.UL .
    AMS is investing heavily in technology for laser-based
sensors used in self-driving cars.
    The group also offers display solutions such as OLEDs -
display sensors that are thinner and more flexible than
light-emitting diodes (LEDs) - and is working on sensors capable
of scanning surroundings in 3D, so-called world-facing 3D
    It makes audio sensors that cancel noise in wireless
earbuds, and has a joint venture with Wise Road Capital for
environmental sensors that detect temperature or moisture. 
    AMS has production sites in Austria, mainly for
semiconductor manufacturing, in the Philippines for testing and
related production steps, and in Singapore for optical
manufacturing and packaging back-end. 
    It also has a location in Texas, where it bought light
sensor supplier TAOS in 2011.     
    Osram, headquartered in Munich, was created out of a merger
in 1919 and was for decades part of Siemens  SIEGn.DE  before
being spun off and floated in 2013. 
    The company has sought under Chief Executive Olaf Berlien to
reinvent itself as a high-tech company, offering products such
as infrared or laser lighting used in self-driving cars, mobile
phones, or "smart" buildings and cities. 
    Soon after taking the helm in 2015, Berlien announced a
billion-euro investment in a new factory in Malaysia that would
produce LED chips for the general lighting market. 
    Berlien has built up the automotive division as a play on
the development of electric and self-driving vehicles. 
    The group reported earnings before interest, tax,
depreciation and amortisation (EBITDA) of 655 million euros on
revenue of 4.1 billion in 2018 with 24,200 staff. Net debt stood
at 424 million euros at the end of June.
    Osram has a market capitalisation of 3.6 billion euros.
    ($1 = 0.8945 euros)

 (Reporting by Kirsti Knolle in Vienna and Douglas Busvine in
London; Editing by Keith Weir and Jan Harvey 
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