AS Media to Acquire Tech point for Strategic Expansion into New Industries, a leading fabless semiconductor company based in Taiwan, has announced that it has entered into a definitive agreement to acquire Tech point, a prominent developer of high-definition video connectivity technology. Under the terms of the agreement, AS Media will purchase all outstanding shares of Tech point, including common stock underlying its Japanese Depositary Shares (“JDS”), for $20.00 per share in an all-cash transaction. This deal represents a fully diluted equity value of approximately $390 million. The boards of directors of both companies have unanimously approved the transaction.
A Landmark Acquisition for AS Media
Che-Wei Lin, President of AS Media Tech point, emphasized the significance of this acquisition, describing it as a “landmark step” in the company’s strategic development.
He stated, “The acquisition of Techp oint will broaden our business portfolio and accelerate our profitable growth. The Tech point team has built a leading video connectivity technology serving the automotive and security industries, which is complementary and accretive to AS Media’s Tech point high-speed transmission solutions. We look forward to working closely with the talented Tech point team that shares our commitment to innovation, enabling us to accelerate technology advancements.”
Techpoint’s expertise in high-definition video solutions aligns well with ASMedia’s Tech point strengths in high-speed transmission interface IC design. This synergy is expected to create significant value for both companies and their stakeholders, enhancing ASMedia’s ability to offer comprehensive solutions to its customers.
Techpoint’s Perspective on the Acquisition
Hiro Kozato, President and CEO of Techpoint, expressed optimism about the deal, noting that it provides compelling value for Techpoint’s shareholders while supporting the company’s long-term success. “ASMedia is a great partner for the future of Techpoint, providing access to a larger platform and resources to build on our existing momentum,” he said. “The combination of our two businesses is positive news for all of our stakeholders, including our customers, employees, and suppliers.”
Transaction Details and Timeline
ASMedia plans to fund the acquisition using its cash reserves. The transaction is expected to close in the second quarter or early third quarter of 2025, subject to regulatory approvals and customary closing conditions, including approval by Techpoint’s shareholders. Upon completion of the transaction, Techpoint’s JDS will cease trading on the Tokyo Stock Exchange, and the company will become a wholly owned subsidiary of ASMedia.
Strategic Benefits of the Acquisition
The acquisition is expected to deliver several key benefits for ASMedia:
- Expanded Product Portfolio: By incorporating Techpoint’s video connectivity technology, ASMedia will be able to offer more comprehensive solutions to its customers, addressing a wider range of industry needs.
- Entry into New Markets: The deal positions ASMedia to capitalize on growth opportunities in the automotive and security sectors, which are experiencing increasing demand for high-definition video and connectivity solutions.
- Enhanced R&D and Global Reach: The integration of Techpoint’s research and development capabilities and global sales footprint will strengthen ASMedia’s ability to provide seamless customer service and drive technological innovation.
- Increased Economies of Scale: The acquisition will allow ASMedia to achieve greater operational efficiency and expand into markets beyond its current territories.
These strategic advantages underscore ASMedia’s commitment to growth and innovation, positioning the company for long-term success in an evolving technology landscape.
Advisors to the Transaction
Citi is serving as the exclusive financial advisor to ASMedia, while legal counsel is being provided by Davis Polk & Wardwell LLP, Mori Hamada & Matsumoto, and Chen & Lin Attorneys-at-Law. Techpoint is being advised by Greenhill & Co., LLC, an affiliate of Mizuho Americas LLC, with legal support from Pillsbury Winthrop Shaw Pittman LLP and Anderson Mori & Tomotsune.
About ASMedia
Founded in Taiwan in 2004, ASMedia is a leading fabless semiconductor company specializing in high-speed transmission interface IC design. The company’s expertise includes USB controller chips, PCIe bridge controller chips, SATA controller chips, high-speed switch controller chips, and application-specific integrated circuits (ASICs). ASMedia’s strong research and development capabilities have positioned it as a trusted provider of cutting-edge solutions in the semiconductor industry. For more information, visit: www.asmedia.com.tw.
About Techpoint
Techpoint is a fabless semiconductor company that develops proprietary high-definition video connectivity technology. The company’s products target high-definition video security systems and automotive infotainment systems, addressing the growing demands of next-generation video industries. With design centers in the United States and offices in Taiwan, Korea, China, and Japan, Techpoint has established itself as a leader in its field, delivering innovative solutions to customers worldwide.
The acquisition of Techpoint by ASMedia marks a significant milestone for both companies. By combining their respective strengths, they are poised to create a more comprehensive and competitive product portfolio, enter new and growing markets, and enhance their global presence. The deal highlights ASMedia’s strategic vision and commitment to innovation, laying the groundwork for sustained growth and success in the semiconductor industry.
