Aug. 28, 2003 — MEMSCAP SA, a France and Silicon Valley-based MEMS designer and manufacturer, plans to acquire Israel-based GalayOr Inc. and raise $3.5 million from its original investors, according to a news release.
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MEMSCAP declined to reveal how much it’s spending on GalayOr, which is developing silicon-based devices for optical communications. Officials said GalayOr has $1.5 million in net cash. GalayOr signed a partnership deal with MEMSCAP in June, and has development agreements with JDS Uniphase and Analog Devices Inc.
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GalayOr Chief Executive Uri Geiger will become president and general manager of MEMSCAP’s optical business unit the acquisition is complete.
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MEMSCAP investors include SPEF Venture, Evergreen Partners, Platinum Neuron Ventures, STI Ventures, ETF, Innovacom and company CEO Jean-Michel Karam.
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For the first six months of 2003, MEMSCAP had a net loss of about $15 million, compared with about $19 million for the second half of 2002. The company said the reduction is a result of a reorganization plan that has included cutting about 70 jobs and consolidating five business units into three.