Alpha and Omega Semiconductor Limited (AOS) announced that it has entered into definitive share purchase agreements for the acquisition of all of the outstanding shares of Agape Package Manufacturing Ltd. (APM) that are not already owned by AOS. APM is a provider of semiconductor packaging and testing services. The consideration for the acquisition is approximately $38 million, comprising of approximately $17 million in cash and 1.8 million AOS’s common shares.
Prior to this acquisition, AOS held 43% equity stake in APM, which was accounted for under the equity method of accounting. Upon closing of this acquisition, APM will become a wholly-owned subsidiary of AOS and its financial results will be fully consolidated in the financial statements of AOS.