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Himax Technologies Signs Technology Investment Agreement with Google

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Himax Technologies (NASDAQ: HIMX) ("Himax" or "Company"), a supplier and fabless manufacturer of advanced display drivers and other semiconductor products, today announced that it has entered into an agreement ("the Agreement") with Google Inc. (NASDAQ: GOOG) pursuant to which Google has agreed to invest in the Company's subsidiary, Himax Display Inc. ("HDI"). The purpose of the investment is to fund production upgrades, expand capacity and further enhance production capabilities at HDI's facilities that produce liquid crystal on silicon ("LCOS") chips and modules used in applications including head-mounted display (HMD) such as Google Glass, head-up display (HUD) and pico-projector products. Under the Agreement, Himax will also invest additional amount in HDI to fund its ongoing capacity expansion. HDI will also use a portion of the proceeds to substantially reduce its loan from Himax. The transaction is expected to close in the third quarter of 2013 subject to regulatory approvals and other closing conditions.

Under the Agreement, Google will purchase certain amount of preferred shares in HDI. Upon closing, Google will hold a 6.3% interest in HDI. Google also has an option to make additional investment of preferred shares at the same price within one year

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Posted-In: M&A News Guidance Financing Contracts Asset Sales Management Global

 

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