IQE acquires Galaxy, raises funds

30th Sep 2010 13:07

IQE, a provider of wafers to the semi-conductor industry, has raised £20.8m through a placing to fund its acquisition of the US provider of materials used in infrared technology Galaxy Compound Semiconductors.IQE chief executive Drew Nelson said the acquisition 'positions IQE as the global leader in the rapidly growing market for antimony based infrared materials that are crucial to advanced imaging systems in a variety of commercial and military applications.'IQE has placed 65m shares at 32p a share. The money will also be used to expand IQE's manufacturing capacity and repay debt.IQE specialises in compound wafers, which use more elements and have wider applications than silicon wafers. Its wafers are used in chips for wireless devices such as mobile phones and in other technologies. It already has an optoelectronics division, which will be enhanced by the Galaxy acquisition.