IQE to acquire cREO technology and IP portfolio

IQE will pay a consideration of USD 5 million, expected to be paid from either IQE's existing cash resources or from new ordinary shares of 1 pence each in IQE being issued to the vendor, within 6 months following the exercise of the option. IQE announced on 15 September 2015 that it had signed an agreement with Silex Systems Limited's subsidiary, Translucent, for the exclusive licence of the company's 'Rare Earth Oxide' cREO semiconductor technology. The Agreement provided IQE with an exclusive 30-month licence for the commercialisation of the Translucent cREO technology and an exclusive option to acquire the technology. The Company has now confirmed that it has exercised its option to acquire the technology and IP portfolio, according to a press release. cREO technology offers a different approach to the manufacture of a wide range of disruptive Compound Semiconductor on Silicon products, including gallium nitride (GaN) on silicon (Si) for the burgeoning Power switching and RF technologies markets. The original cREO technology is protected by a wide-ranging IP patent portfolio. This portfolio has been further enhanced by IQE since September 2015, across a range of new application areas including RF Filters and silicon photonic applications and includes a number of new materials configurations. Dr Drew Nelson, President and CEO of IQE plc, commented "We are very pleased to announce the exercise of this exclusive option to acquire the original portfolio of cREO(TM)patents from Silex Systems. This type of materials innovation is at the core of IQEs disruptive semiconductor materials solution strategy, as we move from a bespoke, customer specification led business model to a more broad based materials innovation led model which offers customers new opportunities to develop disruptive end market products."