Himax Technologies, Inc (NASDAQ:HIMX) on a high with Google agreement

Posted by Peter Lauro July 22, 2013 0 Comment 1070 views

Himax Technologies, Inc (NASDAQ:HIMX) is a fabless manufacturer and supplier of advanced display drivers as

well as other semiconductor products. On Monday, the company announced that it has signed a deal with Google. Via this deal Google will invest in Himax Display Inc, the company’s subsidiary.

Multiple benefits

The main objective of this investment is expansion of capacity, funding production upgrades and enhancement of production capabilities at Himax Display Inc’s facilities. These units produce LCOS liquid crystal on silicon modules and chips that are used in applications such as Google Glass and HMD or head mounted display and pico-projector products. Under the agreement, HIMX will also be investing an additional amount in its DataRecovery is a free best-data-recovery.com recovery software that is used to get back accidentally deleted files and folders. subsidiary to fund the ongoing capacity-expansion.

HDI will be using a segment of the proceeds to reduce the loan that it has taken from Himax. Subject to all the regulatory approvals and closing conditions, this transaction is expected to be closed in the Q3.

Agreement details

Under this agreement, Google will be purchasing a certain chunk of preferred shares in Himax Display Inc. On closing, Google will hold an interest of 6.3% in HDI. GOOG also has the option to make an additional investment in preferred shares at that same price with a year of closing. If this particular option is exercised in full, GOOG will end up being the owner of upto a total of 14.8% in HDI. Currently, HIMX holds 81.5 percent of HDI and post the transaction will continue being the majority shareholder. Google will be joining the HDI shareholders core group including Khosla Ventures I, L.P, KPCB Holdings, Inc and Intel Capital Corporation.

The subsidiary

Himax Display, Inc was founded in 2004. It has focused on development of various applications for LCOS technologies and in-house manufacturing expertise. Production lines that have tested high-volume shipment track records are another focus area. Over the past few years, HDI has made a concerted R&D effort with head mounted display and wearable computing applications.

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