Rohm enters MEMS market with Kionix acquisition

Kionix Inc. and Rohm Co. Ltd entered into a definitive agreement pursuant to which Rohm will acquire all of the outstanding shares of common stock of Kionix. The Boards of Directors of Rohm and Kionix, and the shareholders of Kionix have approved this transaction. Upon completion of the acquisition, Kionix will become a wholly owned subsidiary of Rohm. Rohm plans to operate Kionix as a stand-alone business under the Kionix name and brand with the full support and resources of the entire Rohm organization.

The acquisition of Kionix accelerates Rohm's growth by the addition of its MEMS technology and products representing huge market opportunities. In particular, Rohm expects the Kionix acquisition will ?provide access to a market proven, broadly applicable MEMS platform technology and manufacturing capacity, with an experienced and successful management team and talented employee base. It will also ?allow Rohm to leverage Kionix's expertise in the design and development of high-performance MEMS devices as well as an extensive portfolio of licensed and internally developed intellectual property. And it will strengthen Kionix's technical service and support to its global customers by leveraging Rohm's global

R&D and design expertise and its worldwide quality assurance system, which it has refined and optimized over fifty years, as well as shortening development lead-time by accessing Rohm's IC development capability. The acquisition will also allow Kionix to avail itself of Rohm's purchasing and manufacturing scale to reduce production costs, ensure stability of supply chains and access new market opportunities.

Hidemi Takasu, managing director, member of the board, Rohm, noted, "As a result of this transaction, Rohm and Kionix will together become the global leader in supplying sensor solutions with a vast variety of devices including, but not limited to, hall-effect sensors, temperature sensors, ambient light sensors, light-receiving sensors that receive IR-, UV- and x-rays, and bio-sensors for medical use; and gyro sensors and accelerometers. Rohm will assist Kionix by leveraging Rohm's LSI technology to provide accelerometers for a wide range of applications as well as leveraging the established Rohm global sales force to rapidly build Kionix's business by reinforcing its relationships with Japanese customers as well as introducing Rohm's international customer base."

Greg Galvin, president and CEO of Kionix, said, "Both companies share a common vision, values and strategy, and the transaction should enable Kionix to enhance its product pipeline and enjoy sustainable growth well into the future. Our well-established management team is pleased to be a part of the integration and building of this very exciting business combination, a combination that we believe is not only in the best interest of our shareholders, but also delivers exciting opportunities to our talented employees now and in the future."

The closing of the transaction is subject to customary conditions, including the expiration or termination of any waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The companies expect the transaction to close early in Q4 09.