Cirtek to buy Bangkok-based company

ABS-CBN News

Posted at Jan 28 2013 11:30 AM | Updated as of Jan 28 2013 07:30 PM

MANILA, Philippines - Cirtek Holdings Philippines Corp. on Monday said it is set to buy a Bangkok-based semiconductor assembly and test company. 

However, Cirtek declined to disclose the name of the Thai company and details of the deal.

“We are acquiring a company that has an excellent reputation for product quality and better-than-industry cycle time," the listed semiconductor assembler said in a statement. 

Cirtek said the acquisition of the Bangkok company, which specializes in high-volume, mature packages, will complement its own product offerings. 

The deal will also allow Cirtek to acquire the Bangkok firm's tier one customers.

"With additional investment in production equipment, the Bangkok company has the potential to generate sales turnover of over $40 million cumulative in the next 3 years," Cirtek said. 

Meanwhile, Cirtek said it signed a memorandum of understanding with a major US semiconductor company to supply volume requirements.

Under the deal, the US company will give business, estimated to be worth $68 million, to Cirtek in the next five years through 2017. 

Cirtek expressed confidence these two deals will allow the company to reach its 25% sales growth target for 2013. 

"A 25% growth in top-line for the full year is very achievable; we may adjust our fullyear sales and profit guidance when these projects are consolidated into Cirtek's  operations," Cirtek said. 

In 2012, Cirtek saw its profits rise 11% to $4.4 million  from $3.96 million in the previous year. The growth came from the wireless communication, smart phones, tablets, radio frequency identification, LED and automotive industries.