JF Technology to acquire engineering solution company for RM4.5m

The acquisition involves all the assets and business owned by and used by the firm

by TMR / pic credit: jf-technology.com

JF TECHNOLOGY Bhd’s wholly owned subsidiary, JF TestSense Sdn Bhd, has entered into business agreement with Ikeda Technology (M) Sdn Bhd and its shareholders to acquire precision engineering solution for cash consideration of RM4.5 million.

In a filing to Bursa Malaysia today, the company said the acquisition involves all the assets and business including all designs, products, intellectual property, know-how and technology owned by and used in connection with the business of Ikeda.

Ikeda is a precision engineering provider with a proven track record and experience of more than 15 years in the semiconductor industry. 

The test interface products offered by Ikeda are complementary to the group’s existing test solution products.

“We are excited with the potentials arising from the proposed acquisition of Ikeda. Given its complementary nature with our products, we will be able to create strong synergies and expand our product range.

“In turn, we will be able to provide one stop engineering solutions that can be validated upfront during the development stage to ensure we get it right the first time,” JF Technology MD Datuk Foong Wei Kuong said.

“This reduces the need for our customers to assemble and test the product compared to putting together components from different solution providers, which may potentially give rise to issues. Ultimately, this enhances accountability as well as leads to timelier delivery of overall solutions. A win-win situation, it improves JF Technology’s and our customers’ cost efficiencies, which further elevates our value proposition,” he added.

Foong added that as a result, JF Technology would be able to capture more business and enlarge their customer base. 

The proposed acquisition is expected to contribute positively to the group as it comes with a revenue guarantee. 

This exercise is also part of the group’s growth drivers that would further cement its position in the semiconductor industry as it continues to move up the value chain. 

On balance, JF Technology’s prospects remain promising underpinned by the planned growth drivers and the expanding semiconductor industry, as well as the immense increase in the semiconductor content for various applications.

Barring any unforeseen circumstances, the board expects the proposed acquisition to be completed by the second quarter of 2022.