AEM Holdings, a solutions provider for semiconductor and electronics companies, announced on July 22, 2020, that it has acquired a 100% stake in DB Design Group, a California-based supplier of semiconductor-test products and handling systems such as automation fixtures and device kits for a total consideration of US$3.3 million ($4.6 million).

Under the agreement, AEM Holdings will pay US$2.7 million in cash, which will be satisfied in three stages over the next three years, as well as US$600,000 in AEM shares.

The consideration was arrived at on a willing buyer and willing seller basis. The book value and net tangible asset (NTA) value of DB Design as at May 31, are US$428,000 and US$119,000 respectively.

AEM Holdings has a large presence in the global market, with five manufacturing plants located in Singapore, Malaysia, China, Finland and France. This acquisition will allow AEM to solidify their presence further, because it will allow them to expand their Serviceable Available market to include the automation fixture and device kit markets, and will give AEM an opportunity to increase their client base through DB Design Group’s existing customers. 

AEM’s Executive Chairman Loke Wai San commented, “We are thrilled that the team at DB Design is now part of our AEM family. Not only does DB Design have an impressive list of semiconductor customers for their lab handler and custom kits, they also bring tremendous design and application engineering capabilities for AEM’s consumables business, and local support to our North American based customers.” 

“We are now able to offer almost 24-hour R&D services to our customers leveraging our US and Asia based teams, as well as rapid prototyping and supply chain resiliency via high mix production run support in the US,” he adds.

As at 11.23am, shares in AEM were changing hands 4 cents higher, or 1.1% up, at $3.62.