March 13, 2001–Hawthorne, California–OSI Systems Inc. today announced that it has signed a definitive agreement to sell its wholly owned subsidiary Silicon Microstructures (SMI) to ELMOS Semiconductor AG for approximately $6.5 million. The transaction is scheduled to close by the end of March.
The sale amount includes $6 million in cash to be paid to OSI Systems upon closing, and an additional $462,000 for certain capital equipment items being purchased by SMI from OSI Systems’ UDT Sensors subsidiary. The sale agreement also includes a 3-year commitment from UDT Sensors to supply 4-in. silicon foundry wafers to SMI, and to dedicate limited manufacturing facilities to be used by SMI for its etching operations.
SMI was acquired by OSI Systems in November 1998 from Exar Corp. SMI’s products include ultra-precise mechanical sensing structures that provide an interface between the physical world and the electronic world of signal processing. The products are used in automotive applications such as emission control, engine control, and brakes, as well as in disposable medical devices and industrial systems for heating and ventilation.
“We are pleased to announce the sale of SMI to ELMOS Semiconductor,” says Deepak Chopra, OSI Systems’ president and chief executive officer. “SMI is a proven innovator and leader in the field of silicon pressure sensor technology, and has contributed to the growth of OSI Systems’ knowledge-base. One of our major considerations in proceeding with this transaction was to set the stage for what we hope will be a long, continued relationship with SMI and ELMOS. While we see a bright future for SMI, OSI Systems is focusing our operations on other key growth areas, like OSI Fibercomm, our fiber optic components business, where we have been experiencing significant growth. Going forward the three major thrusts for our company will be our fiber optics, security products, and medical device businesses. Our strategy has been to cultivate our resources in order to drive and generate value from these business lines.”