JF Technology Bhd through its wholly-owned JF TestSense Sdn Bhd had entered into an agreement with a precision engineering provider Ikeda Technology (M) Sdn Bhd for RM4.5 million.
In a Bursa Filing, it said that it entered into an agreement with Mr. See Hock Eng and Mr. Lim Chin Nyen (“Agreement”) for the proposed acquisition of the business and assets including all designs, products, intellectual property, know-how and technology owned by and used in connection with the business of Ikeda Technology
JF Tech is an investment holding company and its subsidiaries (“JF Tech Group” or “Group”) are principally involved in design, development, custom manufacture, and sale of integrated circuit test sockets, interconnect, test solutions, and equipment for semi-conductor and electronic assembly markets; manufacturing and trading of electronic products and components; test development engineering services, talent development and design, manufacture, sale and provision of technical support for integrated circuits test contacting interface solutions.
It said that in accordance with the terms of the Agreement, Ikeda Technology has guaranteed arising from this Proposed Acquisition, that JF TestSense will achieve annual revenue of at least RM600,000 from the sale of products from the Business for financial year ending (“FYE”) 30 June 2023 (“Year 1 Revenue Guarantee”) and FYE 30 June 2024 (“Year 2 Revenue Guarantee”), respectively.
It said that for the avoidance of doubt, the aggregate annual revenue from the sale of products from the Business for both FYE 30 June 2023 and FYE 30 June 2024 shall not be less than RM1,200,000 (“Cumulative Revenue Guarantee”).
It said that as pledge for the Cumulative Revenue Guarantee, a sum of RM600,000, forming part of the Purchase Consideration (“Retention Sum”) will be withheld by JF TestSense.
It said that the test interface products offered by Ikeda Technology are complementary to the existing test solution products offered by JF Tech Group, “In view of the above, the Proposed Acquisition allows JF to offer full set of components and services such as docking plates, stiffeners and other mechanical fixtures, which complements its test contactors solutions and completes the semiconductor test setup; provides one stop solution to the Group’s customers for test interface products and test engineering services, moving the Group up the semiconductor value chain,” it said.
