David Savastano, Editor02.03.10
As the global economy suffered through one of the worst recessions in decades, even areas as promising as printed electronics (PE) witnessed a drop in venture capital (VC) funding and merger and acquisition activity.
However, there was still activity inthe PE space, and much has come to fruition in the last two months. The field has witnessed announcements of two major acquistions, as well as some significant funding of promising technology-rich companies.
Mergers and acquisitions always draw the most attention, and two companies that were themselves built at least partially through acquisitions were acquired in January 2010.
In a major acquisition announced January 4, SCM Microsystems, a leader in providing security solutions, acquired Bluehill ID AG, a specialist in automatic identification and RFID technologies. As a result of the combination, the company will be known as Identive Group.
This was the second major acquisition by SCM Microsystems in a little more than a year. In December 2008, the company acquired Hirsch Electronics Corporation, a leader in the physical security industry and the electronic access control market. Among the companies combined under the Bluehill ID umbrella are Multicard, Arygon, ACiG, TagStar and Syscan ID.
Meanwhile, on Jan. 14, Sirit Inc., a Toronto, Canada-based specialist of complete RFID solutions from tags to readers, announced that it signed a definitive agreement to be acquired by Federal Signal Corporation. The transaction has a total equity value of approximately $48 million.
This is a nice fit of technologies. Sirit has been in the RFID field for 16 years, and along the way, acquired SAMSys in 2006 and RSI ID Technologies, Inc. in 2008. Sirit is one of the three worldwide leaders in RFID tolling, electronic vehicle registration and parking and access control, and also has a stake in asset management, cashless payments and supply chain systems. In particular, Sirit has set up tolling systems in the western U.S. and Latin America, among other locations.
Federal Signal is a leader in the areas of environmental, safety and transportation solutions, and among its key applications is Federal Signal’s PIPS automated license plate recognition technology. Federal Signal also offers a significant detection and classification technology portfolio it acquired in December 2009 with the purchase of Diamond Consulting Services.
By combining the two companies, Federal Signal gains access to Sirit’s portfolio, which is well positioned in the rapidly expanding Intelligent Transport Systems market, while Sirit gets access to greater financial resources and customer base.
On the financing front, any time a company receives a large infusion of funding, it indicates that smart money is on their technology. For the PE companies that have received funding, green technologies and strong commercial opportunities are the common denominator.
One good example is Cymbet Corporation, which received $31 million as it successfully completed the final phase of its third round of private equity financing from Perseus, L.L.C., Intel Capital, Texas Instruments and Dow Chemical, among others. The company anticipates using the financing expand its global EnerChip sales and marketing initiatives and add manufacturing capacity, which has strong opportunities in the rechargeable energy business and is an eco-friendly solution.
In early 2010, Innovalight, Inc., a specialist in silicon ink-based high efficiency photovoltaic materials and technology, announced that it has raised $18 million in additional capital, led by EDB Investments of Singapore. This funding will be used to expand the company’s proprietary silicon ink production for customers.
This is another example of a company that specializes in green technology receiving funding with an eye toward the growing opportunities in the marketplace. In September 2009, the company announced a record 18 percent conversion efficiency with its silicon ink solar cell platform, and it is targeting efficiencies greater than 20 percent.
Confidex Oy, a leader in the field of contactless RFID technologies for mass transportation applications and logistics, announced that it received €2.7 million in funding from a state owned equity firm, Suomen Teollisuussijoitus Oy (Finnish Industry Investment Ltd.), Aura Capital Oy and previous owners have invested a total of €2.7 million into. Confidex also received an additional €2.3 million loan from Finnvera and the Sampo Bank Plc.
In receiving the funding, the company noted that its revenue tripled in 2009, and that the money will go to increasing production capacity, particularly in China, and product development.
QD Vision also received an infusion of funding in January 2010, with DTE Energy investing $3 million in the company, which specializes in quantum dot-based nanomaterials for solid state lighting and displays. The money will be utilized for market expansion, and follows a $10 million initial close of funding announced in December 2009.
QD Vision was founded in 2004 by a research team from MIT. QD Vision's first product, a Quantum Light optic for a new high- efficiency, high-color-quality LED lamp developed by Nexxus Lighting, Inc., is, expected to ship in the first quarter of 2010, and can be directly installed in standard incandescent light sockets.
Semprius, Inc., which has developed a unique process for printing high-performance semiconductors, has received a strategic investment of $1.5 million from X-FAB Semiconductor Foundries AG, the leading analog/mixed-signal semiconductor foundry. In turn, X-FAB will be the designated foundry for Semprius’ technology.
However, there was still activity inthe PE space, and much has come to fruition in the last two months. The field has witnessed announcements of two major acquistions, as well as some significant funding of promising technology-rich companies.
Mergers and Acquisitions
In a major acquisition announced January 4, SCM Microsystems, a leader in providing security solutions, acquired Bluehill ID AG, a specialist in automatic identification and RFID technologies. As a result of the combination, the company will be known as Identive Group.
This was the second major acquisition by SCM Microsystems in a little more than a year. In December 2008, the company acquired Hirsch Electronics Corporation, a leader in the physical security industry and the electronic access control market. Among the companies combined under the Bluehill ID umbrella are Multicard, Arygon, ACiG, TagStar and Syscan ID.
This is a nice fit of technologies. Sirit has been in the RFID field for 16 years, and along the way, acquired SAMSys in 2006 and RSI ID Technologies, Inc. in 2008. Sirit is one of the three worldwide leaders in RFID tolling, electronic vehicle registration and parking and access control, and also has a stake in asset management, cashless payments and supply chain systems. In particular, Sirit has set up tolling systems in the western U.S. and Latin America, among other locations.
Federal Signal is a leader in the areas of environmental, safety and transportation solutions, and among its key applications is Federal Signal’s PIPS automated license plate recognition technology. Federal Signal also offers a significant detection and classification technology portfolio it acquired in December 2009 with the purchase of Diamond Consulting Services.
By combining the two companies, Federal Signal gains access to Sirit’s portfolio, which is well positioned in the rapidly expanding Intelligent Transport Systems market, while Sirit gets access to greater financial resources and customer base.
Financing
On the financing front, any time a company receives a large infusion of funding, it indicates that smart money is on their technology. For the PE companies that have received funding, green technologies and strong commercial opportunities are the common denominator.
This is another example of a company that specializes in green technology receiving funding with an eye toward the growing opportunities in the marketplace. In September 2009, the company announced a record 18 percent conversion efficiency with its silicon ink solar cell platform, and it is targeting efficiencies greater than 20 percent.
In receiving the funding, the company noted that its revenue tripled in 2009, and that the money will go to increasing production capacity, particularly in China, and product development.
QD Vision was founded in 2004 by a research team from MIT. QD Vision's first product, a Quantum Light optic for a new high- efficiency, high-color-quality LED lamp developed by Nexxus Lighting, Inc., is, expected to ship in the first quarter of 2010, and can be directly installed in standard incandescent light sockets.