Masimo Acquires Spire Semiconductor For $8.5 Million

Spire Corporation has completed the sale of most of the assets of Spire Semiconductor to Masimo Semiconductor for an aggregate consideration of $8.5 million.

Spire Semiconductor is a foundry services business.

“With the divestiture of our semiconductor business to Masimo, Spire has strengthened its financial position and can now more aggressively pursue opportunities in its solar and biomedical businesses," says Roger G. Little, Chairman and Chief Executive Officer of Spire Corporation. “For the past several years, Masimo has been one of our largest customers and is an ideal strategic buyer for the business."

Joe Kiani, Masimo CEO and Chairman of the Board continues, “Spire Semiconductor is a very innovative company. We have been extremely impressed with their technology and the service they have provided to us as a customer. We plan to continue building on the proprietary technology base established by Spire Semiconductor. The acquisition will permit us to focus the operation on Masimo’s custom component requirements and accelerate technology advancements in our non-invasive blood monitoring products."

The asset purchase agreement provided that the aggregate purchase price for the Semiconductor Business unit was $8.0 million plus the assumption of $500,000 in liabilities, with the cash portion of the purchase price being reduced by retained cash and liabilities assumed by Masimo in excess of $500,000.

As a result, on the closing date, the Company received approximately $7.2 million in cash and Masimo assumed approximately $1.2 million in liabilities. Of the purchase price, approximately 10% of the cash portion was deposited into an indemnity escrow account for fifteen months.

ThinkEquity LLC served as exclusive financial advisor to Spire Corporation.