OmniVision Technologies, Inc. (NASDAQ:OVTI) gave in to a Beijing-based group of investors hailing from private equity firm called Hua Capital Management Company, in an all-cash transfer deal worth $1.9 billion. OVTI has been one of the key suppliers in the realm of camera sensors to Apple Inc. (NASDAQ:AAPL) for iPhones. The company works towards elegant digital image processing and implements the technology in developing top-notch camera sensors. The company of Camera CubeChip-fame shall soon be a part of the Chinese endeavor.
Press Statement
In a statement, OVTI spokesperson stated that Hua Capital is a consortium of private equity firms, having promising mission and vision into future. The latter shall be paying out $29.75 for every OVTI share, as a part of this acquisition process. Other private equity firms who are part of this deal involves Citic Capital Holdings Ltd. And GoldStone Investment Company.
Win-Win Deal
Once the acquisition is complete, OVTI shall become a private entity and hence shall not be listed on public stock exchanges. The net worth of each share has soared almost 36% over the past year. Currently, the value of this company is $1.54 billion. In this perspective, the deal seems to be a good-valued and profitable indeed for the shareholders and the company executives.
The Deal Requires Affirmation
In the US as well as China, regulators and stockholders need to reaffirm this deal. The acquisition and the terms for it have been reached by OmniVision board members unanimously. The deal is deemed to be confirmed by the end of 2015 or latest by early 2016.
Shaw Hong To Continue As CEO
Further, OVTI authorities overtly stated that it would invest in Taiwan; the deal needs to be approved and cleared with accordance to Taiwanese law. The current CEO is Shaw Hong. There are rumors abound that he will remain in the post after acquisition process and privatization are holistically carried out.
