Legend acquires IES investments

Memory vendor Legend has acquired IES Investments and its wholly owned subsidiary Integrated Electronic Solutions.

The acquisition, for an initial $23 million in cash and shares with a deferred cash payment, will provide Legend additional electronics engineering and design capabilities.

Legend CEO Bradley Dowe said the deal would also bring the group ” key intellectual property” that would allow Legend to exploit growth in the Chinese domestic market.

IES was established in 1997 as the result of a management buyout of the Philips microelectronics operation by the current IES management. It has its base in Adelaide.

The company specialises in the design and manufacture of unique integrated circuits, thick film hybrids and printed circuit board module assemblies.

In the year ending 30 June 2006 IES had an EBIT of $5.8 million.

Key IES executives have entered into employment contracts and will be retained to grow the IES business and work within the broader Legend group.

Legend anticipates levering sales of existing IES component products by utilising Legend’s sales and distribution infrastructure.

The company anticipates adding new product lines based on IES components to its existing sales and distribution lines in many countries.