DigitalOptics (DOC), a wholly owned subsidiary of Tessera Technologies, is set to acquire camera module manufacturing assets from Vista Point Technologies, a business of Flextronics International (Flextronics).
DOC has agreed to pay around $23 million in cash for the Flextronics’ assets in Zhuhai, China, which includes equity interests of an enterprise that will own the business. The Zhuhai Camera Module Business is expected to have an annual manufacturing capacity of around 50 million camera module units. The transaction includes lease to a 135,000-sq.ft facility and customer contacts.
The president and CEO of Tessera Technologies, Robert A. Young, stated that the Zhuhai business will help drive the commercial introduction of DOC technology. It will help address the need of Tier One OEM manufacturers. The present deal will transform the company into a Tier One vertically integrated camera modules supplier from an image and optical enhancement components and software business.
The company is also discussing with mobile phone Tier One OEM manufacturers about its MEMS autofocus product. The company’s MEMS technology will enable faster, low-power consuming, faster and thinner cameras and will be a potential replacement for currently used magnetic voice coils.
The president of DOC, Bob Roohparvar, stated that the Zhuhai Camera Module Business acquisition will help the company become a prominent provider of integrated camera modules for mobile phones. The company has been developing technologies for improving optical imaging and also its manufacturing capacity.
The business transaction requires approvals from PRC governmental authorities. The transaction includes a transition services agreement and a license and intellectual property assignment agreement.