On January 15, 2025, ASMedia Technology Inc. (Stock Code: 5269, hereafter referred to as " ASMedia" ) announced that it would acquire all of Techpoint, Inc.'s shares for $390 million (approximately NT$12.9 billion) through its wholly-owned subsidiary, Apex Merger Sub Inc. This acquisition not only demonstrates ASMedia’s ambition to expand in the global market, but also allows it to further enter the automotive sector and diversify its business.
Purpose of M&A
ASMedia is a well-known global provider of high-speed transmission interface solutions and is part of the ASUS Group (Stock Code: 2357). The company has strong technical capabilities and a solid market performance, actively seeking to expand its business, particularly in the automotive and security markets.
The main goal of this acquisition is to further expand ASMedia's business portfolio, especially in the automotive and security sectors. Techpoint holds a leading position in image connectivity technology, and the complementary nature of the two companies' product lines will enable ASMedia to offer more complete solutions. ASMedia expects this move to significantly boost its revenue and drive profit growth in the coming years.
This transaction will not only enhance ASMedia's competitiveness in the automotive and security markets but will also help the company expand into international markets and increase its research and development capabilities.
Acquisition Terms
ASMedia will acquire all of Techpoint’s shares at US$20 per share, which represents a premium of approximately 170% over Techpoint’s most recent stock price. Following the acquisition, Techpoint will become a wholly-owned subsidiary of ASMedia. The funding for this transaction will primarily come from ASMedia’s cash reserves.
Schedule
January 15, 2025: ASMedia’s board of directors approves the acquisition of Techpoint.
Estimated completion between Q2 and Q3 of 2025: The transaction will close, and Techpoint's Japanese Depository Receipts (JDR) will be delisted from the Tokyo Stock Exchange.
