Sumitomo Chemical acquires Cambridge Display Technology for $285m
Sumitomo Chemical Company and Cambridge Display Technology (OLED) said they have agreed that Sumitomo will buy CDT for $285m, paying $12 a share, providing they can convince shareholders of the value of the deal.
The price represents a 107% premium over CDT's 90-day average closing share price and a 95% premium over yesterday’s closing price of $6.15.
Sumitomo said interests associated with 43% of Nasdaq-listed CDT’s stock, including senior management, had agreed to sell their stakes. And senior management will recommend the takeover to shareholders.
CDT Chairman and CEO David Fyfe (pictured) said: "I believe the acquisition will significantly enhance the prospects for P-OLED [polymer light emitting device] technology adoption, especially as P-OLED is looking ever more likely to become the next mainstream display technology.
"CDT and Sumitomo Chemical have developed a more integrated and closer relationship since Sumitomo acquired a license to certain IP from CDT in 2001, culminating in the formation of a 50/50 joint venture in 2005 to develop, manufacture and sell P-OLED materials to CDT licensees and others.
“We have admired the long term commitment of Sumitomo Chemical to the development of this very important technology and believe this merger is not only in the best interest of our shareholders but also of our employees and the global display industry."
CDT, headquartered in Cambridge, was spun out of the University of Cambridge in 1992. It is a global leader in the research and commercialisation of polymer light emitting device (P-OLED) technology, designed for use in flat panel displays, lighting and photovoltaic applications.
It holds an extensive patent and know-how portfolio relating to the use of conjugated polymers and the manufacture of devices based on them. Its technologies are based on organic chemicals that emit light when stimulated electrically, and the resulting devices are used in electronic displays for information management, communications and entertainment, potentially including the next generation of large panel televisions.
Hiromasa Yonekura, President of Sumitomo Chemical, said: "In recent years, [we have] positioned [our] display materials business as one of our strategically important business areas and an area of focus for our business resources.
“OLEDs are expected to see considerable market growth in the future as next-generation materials for flat panel displays and lighting applications, and our company is actively engaged in the development of new materials and the improvement of device technologies.
"We have built a close cooperative relationship with CDT up to this point, and the complete integration of both companies' technological and intellectual assets through this acquisition will make it possible to greatly accelerate development. We are very grateful for the support of the CDT board of directors and major shareholders, and I am pleased to extend a warm welcome to all our colleagues at CDT on behalf of Sumitomo Chemical."
Completion of the merger is subject to CDT stockholder approval. The acquisition is expected to close during the third or fourth quarter of 2007.
1st August 2007
