Google has acquired a 6.3 percent share in Himax Display Technologies, with a future option to get another 8.5 percent. First things first though as some many not be familiar with the Himax name. They produce liquid crystal on silicon (LCOS) chips and modules that are used in items including the heads-up display and pico projectors as well as the head-mounted display.
In this this case the latter has the connection to Google in that Himax is the company that produces the chips for Google Glass. Basically, Google has acquired the initial 6.3 percent share and will have the option to add that remaining 8.5 percent at the same price within one year from closing.
Assuming things work out and Google moves forward that would bring the total up to 14.8 percent. Otherwise, Himax Technologies Inc holds 81.5 percent at this time and will remain the major shareholder. Google has joined others such as KPCB Holdings, Inc., Khosla Ventures I, L.P. and Intel Capital Corporation.
This acquisition is expected to close (pending the necessary regulatory and other closing conditions are met) during the third quarter of the year. As for Himax, this will be used to “fund production upgrades, expand capacity and further enhance production capabilities.”
In addition to the money coming from the Google acquisition, it was said that Himax (Himax Technologies Inc) will invest an additional (undisclosed) amount into Himax Display Technologies (HDT) to further push the capacity expansion.
SOURCE: Yahoo Finance
