Transaction Signifies Major Milestone in Strategy to Streamline Back-End Operations
Manchester, NH, Aug. 03, 2021 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (“Allegro”), a global leader in sensing and power semiconductor technology, today announced that it has finalized the sale of its manufacturing facility in Thailand (“AMTC”) to Innolight Technology (Thailand) Co., Ltd. The AMTC purchase price was approximately $27 million USD before fees and expenses. This sale is an important milestone in the execution of Allegro’s manufacturing transformation to streamline back-end operations and enhance gross margin.
Allegro previously announced its facility consolidation plans as part of a multi-year strategic transformation to optimize the company’s manufacturing footprint and reduce fixed costs. In 2020, the company shared that it had successfully transferred production from AMTC into its Manila, Philippines facility (“AMPI”), one quarter earlier than initially planned.
“This transaction takes us one step further toward our long-term goal of a fabless, asset-light operating model,” said Thomas Teebagy, Senior VP of Operations and Quality. “By consolidating integrated circuit assembly and testing into a single site, we’re streamlining manufacturing flows and lowering our back-end costs, while simultaneously reducing our energy consumption and minimizing waste—important steps toward our vision of moving the world toward a safer, more sustainable future.”
Global advisory firm ATREG, Inc., based in Seattle, Washington advised Allegro MicroSystems on this transaction.
About Allegro MicroSystems
Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and green energy applications.
About ATREG, Inc.
Headquartered in Seattle, USA, ATREG, Inc. specializes in helping global companies divest and acquire infrastructure-rich advanced technology manufacturing assets, including front-end and back-end semiconductor fabs, cleanroom facilities, and technology campuses in North America, Europe, and Asia.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the expected benefits resulting from our acquisition of Voxtel and our expected financial performance for our second fiscal quarter ending September 24, 2021. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “target,” “mission,” “may,” “will,” “would,” “should,” “could,” “target,” “potential,” “project,” “predict,” “contemplate,” “potential,” or the negative thereof and similar words and expressions.
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All forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
Katherine BlyeAllegro MicroSystems