Google To Acquire Stake In Himax Technologies' Display Unit

(RTTNews) - Himax Technologies, Inc. (HIMX), a supplier and fabless manufacturer of advanced display drivers and other semiconductor products, announced Monday that it has entered into an agreement with Google Inc. (GOOG) by which Google has agreed to invest in the Company's subsidiary, Himax Display Inc. or "HDI".

Himax said that the purpose of the investment is to fund production upgrades, expand capacity and further enhance production capabilities at HDI's facilities that produce liquid crystal on silicon or "LCOS" chips and modules used in applications including head-mounted display or HMD such as Google Glass, head-up display or HUD and pico-projector products.

As per the Agreement, Himax will also invest additional amount in HDI to fund its ongoing capacity expansion. HDI will also use a portion of the proceeds to substantially reduce its loan from Himax. The transaction is expected to close in the third quarter of 2013 subject to regulatory approvals and other closing conditions.

Under the Agreement, Google will purchase certain amount of preferred shares in HDI. Upon closing, Google will hold a 6.3% interest in HDI. Google also has an option to make additional investment of preferred shares at the same price within one year from closing. If the option is exercised in full, Google will own a total of up to 14.8% in HDI.

Himax Technologies. holds 81.5% of HDI at present and will remain the major shareholder of HDI after the transaction. Google will join the core group of HDI shareholders including KPCB Holdings, Inc., Khosla Ventures I, L.P. and Intel Capital Corporation.