The proportions of the joint venture to be held by AMS and Wise Road Capital were not disclosed a spokesperson for the company said Wise Road Capital holds a “slight majority.” Under the agreement employees, IP, sensor products and solutions and related customer contracts will transfer from AMS to the joint venture, while Wise Road Capital will provide joint venture guidance.
It is notable that Wise Road Capital took a stake in Nexperia, the standard products business spun off from NXP Semiconductors NV (Eindhoven, The Netherlands) in 2016, before selling the business on to Wingtech Technology Co. Ltd. (Shanghai, China) (see Chinese firm to buy Nexperia for $3.6 billion).
AMS will transfer its current environmental sensor solution portfolio covering air quality, relative humidity and temperature sensing. This is in-line with its declared intention to exit the environmental sensor business (see AMS wants out of environmental sensing). In addition, the ams ultrasound-based flow sensor solutions will become part of the new company portfolio. To round out the offering, the ams pressure sensor development will also become part of the product portfolio.
The joint venture – as yet unnamed – will be headquartered in the Netherlands and will be led by Stefan Raible who will serve as managing director. Stefan is currently general manager of the environmental sensors business at AMS and was the former CEO of Applied Sensors, which was acquired by AMS in 2014 (see AMS set to buy German gas sensor firm).
Next: What value
The agreement values the joint venture business at approximately US$120 million and is expected to conclude in fall 2019.
“This new JV will have a dedicated team focusing on further advancing and developing AMS’ award winning environmental, flow and pressure sensor solutions for which we see the largest market opportunity in China. The combination of AMS technology and Wise Road market strength create an excellent start for the new company,” said Chris Feige, executive vice president at AMS, in a statement.
“Wise Road Capital sees immense potential in marketing the excellent technology and products developed by AMS. We look forward to applying our expertise and leveraging our relationships to make this a very successful joint venture. Not only do we have resources and networks in China, but also our close ties with leading technology companies and research institutes globally will make a valuable contribution to the joint venture,” said Michael Zhang, managing partner at Wise Road Capital, in the same statement.
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