CML Microsystems PLC Disposal of Storage Division (1399I)
10 December 2020 - 6:00PM
UK Regulatory
TIDMCML
RNS Number : 1399I
CML Microsystems PLC
10 December 2020
CML Microsystems Plc
("CML" or the "Group")
Disposal of Storage Division for US$49m
CML to focus exclusively on the communications sector
CML Microsystems Plc (CML.L) announces that it has entered into
a definitive agreement to divest of Hyperstone, the Group's storage
division ("Storage Division"), to Swissbit, a specialist producer
of industrial-grade data-storage and embedded IoT solutions, for
US$49 million in cash (the "Disposal").
The Disposal reflects a strategic decision made by the Board to
refocus the Group exclusively on the global Communications market.
The Board believes the communications sector represents a large and
high growth market opportunity for CML, which has been
significantly enhanced through the acquisition of PRFI Limited in
March 2020. The Disposal further enables CML to direct its efforts,
including research and development spend, on capturing the exciting
growth opportunities within the wireless communication markets,
leveraging its standing as a key supplier to many of the world's
Tier 1 equipment manufacturers.
Under CML's ownership, the Storage Division has grown to become
a major player within the industrial solid state storage market,
supplying some of the world's largest OEM's with class-leading
solutions. The Board would like to thank the management and
employees of Hyperstone for their hard work, dedication and
innovative approach over the years and feels confident that they
will benefit from a new ownership structure that better aligns with
Hyperstone's growth objectives.
The proceeds from the Disposal will provide the Group with the
financial flexibility to maximise its future growth potential. The
Disposal is expected to close in the first few weeks of 2021,
subject to obtaining necessary regulatory approvals and other
customary closing conditions.
CML Microsystems Plc www.cmlmicroplc.com
Chris Gurry, Group Managing Director Tel: +44 (0)1621 875 500
Nigel Clark, Group Chairman & Financial
Director
Shore Capital Tel: +44(0)20 7408 4090
Edward Mansfield
James Thomas
Fiona Conroy - Corporate Broking
SP Angel Corporate Finance LLP Tel: +44(0)203 463 2260
Jeff Keating
Alma PR Tel: +44 (0)7780 901979
Josh Royston
Caroline Forde
Robyn Fisher
About CML Microsystems PLC
CML designs and develops semiconductors for the industrial
storage and communications markets. The Group utilises a
combination of in-house and outsourced manufacturing and has
trading operations in Europe, the Far East and USA. CML targets
niche markets with strong growth profiles and high barriers to
entry. It has secured a diverse, blue chip customer base, including
some of the world's leading telecoms equipment providers and
industrial product manufacturers.
The spread of its customers and products largely protects the
business from the cyclicality usually associated with the
semiconductor industry. Growth in its end markets is being driven
by factors such as the ever increasing trend towards solid state
storage devices in the commercial and industrial sectors, the
upgrading of telecoms infrastructure around the world and the
growing prevalence of private commercial communications networks
for voice and/or data communications linked to the industrial
internet of things (IIoT).
The Group is cash-generative, has a net cash position and is
dividend paying.
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END
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