CML Microsystems PLC Disposal of Storage Division (1399I)

TIDMCML

RNS Number : 1399I

CML Microsystems PLC

10 December 2020

CML Microsystems Plc

("CML" or the "Group")

Disposal of Storage Division for US$49m

CML to focus exclusively on the communications sector

CML Microsystems Plc (CML.L) announces that it has entered into a definitive agreement to divest of Hyperstone, the Group's storage division ("Storage Division"), to Swissbit, a specialist producer of industrial-grade data-storage and embedded IoT solutions, for US$49 million in cash (the "Disposal").

The Disposal reflects a strategic decision made by the Board to refocus the Group exclusively on the global Communications market. The Board believes the communications sector represents a large and high growth market opportunity for CML, which has been significantly enhanced through the acquisition of PRFI Limited in March 2020. The Disposal further enables CML to direct its efforts, including research and development spend, on capturing the exciting growth opportunities within the wireless communication markets, leveraging its standing as a key supplier to many of the world's Tier 1 equipment manufacturers.

Under CML's ownership, the Storage Division has grown to become a major player within the industrial solid state storage market, supplying some of the world's largest OEM's with class-leading solutions. The Board would like to thank the management and employees of Hyperstone for their hard work, dedication and innovative approach over the years and feels confident that they will benefit from a new ownership structure that better aligns with Hyperstone's growth objectives.

The proceeds from the Disposal will provide the Group with the financial flexibility to maximise its future growth potential. The Disposal is expected to close in the first few weeks of 2021, subject to obtaining necessary regulatory approvals and other customary closing conditions.

 
CML Microsystems Plc                      www.cmlmicroplc.com 
 Chris Gurry, Group Managing Director      Tel: [phone] 
 Nigel Clark, Group Chairman & Financial 
 Director 
Shore Capital                             Tel: [phone] 
 Edward Mansfield 
 James Thomas 
 Fiona Conroy - Corporate Broking 
SP Angel Corporate Finance LLP            Tel: [phone] 
 Jeff Keating 
Alma PR                                   Tel: [phone] 
 Josh Royston 
 Caroline Forde 
 Robyn Fisher 
 

About CML Microsystems PLC

CML designs and develops semiconductors for the industrial storage and communications markets. The Group utilises a combination of in-house and outsourced manufacturing and has trading operations in Europe, the Far East and USA. CML targets niche markets with strong growth profiles and high barriers to entry. It has secured a diverse, blue chip customer base, including some of the world's leading telecoms equipment providers and industrial product manufacturers.

The spread of its customers and products largely protects the business from the cyclicality usually associated with the semiconductor industry. Growth in its end markets is being driven by factors such as the ever increasing trend towards solid state storage devices in the commercial and industrial sectors, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial communications networks for voice and/or data communications linked to the industrial internet of things (IIoT).

The Group is cash-generative, has a net cash position and is dividend paying.

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December 10, 2020 02:00 ET (07:00 GMT)