‘Any size of deal is possible,’ says chipmaker AMS

This post was originally published on this site

ZURICH (Reuters) – High-flying Austrian chipmaker AMS (AMS.S) is looking for more acquisitions to accelerate growth and increase its leading position in sensors used in phones, automobiles and industrial gear, Chief Executive Alexander Everke said on Tuesday.

“Any size of deal is possible, I am not ruling out anything in terms of size,” Everke told Reuters.

“We are looking for companies who have the best differential technology to gain leadership in those areas. We are looking at technology, not revenue,” he said.

The CEO said AMS was not just focused on acquiring technology used in phones: “We see a lot of other applications emerging now … We are talking to automotive companies, who are talking about putting facial recognition into their cars, we see it in the industrial space for extra security,” Everke said.

“In China, they are thinking of putting facial recognition in every taxi to recognize the driver and passengers. There is a lot of momentum right now going on because a lot of application customers are thinking about how to use this technology.”

The Swiss-quoted company could use its own cash flow, shares or the proceeds of a new $600 million bond to buy companies, Everke said.

Software companies were of interest as well as hardware companies, chipmakers or optical specialists. “Whatever is needed we will do,” he said.

AMS on Tuesday announced the purchase of Swiss facial recognition software company KeyLemon as it reported a tenfold rise in quarterly profit on the back of hot demand for sensors used in smartphones such as Apple (AAPL.O) iPhones.

Everke said AMS was looking for companies working in optical, imaging, audio and environmental technology.

“The revenue will come automatically. If it is a company with great technology and market presence, with large revenue, that is fine, but the pure reason is technology, to enhance our portfolio and potential market access,” he said.