Rakon scopes US buyouts as Biden bolsters component supply chains
Sinan Altug (Rakon)
Credit: Supplied
Auckland-based GPS component maker Rakon is targeting US acquisitions to gain access to top-tier American companies.
CEO Sinan Altug told shareholders yesterday there were “clear synergies” in buying a US-based business with local US manufacturing to strengthen existing customer relationships.
“An acquisition of this nature could also put Rakon in a good position to benefit from the Biden Administration’s initiatives to grow US-based semiconductor supply chains,” Altug wrote in a New Year message.
Rakon, which has thrived during recent global chip shortages, had retained mergers and acquisitions veteran Angus Cooper as it focused on identifying companies that could complement its existing operations.
Cooper boasts 25 years of public company experience and successfully led over 30 acquisitions, with a track record of delivering value to shareholders, Altug said.
“Our M&A efforts focus on identifying companies that would complement our existing operations, provide access to new markets and technologies, and ultimately drive long-term value for our shareholders, he said.
Meanwhile, construction at Rakon India’s new manufacturing facility in Bengaluru (Bangalore) is nearing completion. Clean room facilities were finished and the process of transferring manufacturing operations from the existing site had begun.
Other key growth projects were tracking well, Altug said.
These included a new nanotechnology production process supporting five products and generating strong customer interest; a suite of products for low earth orbit satellites which were establishing Rakon in that ecosystem; and a new semiconductor chip.
Altug said Rakon would also shortly move its UK semiconductor chip development team to new offices in Cambridge, to tap into a “vibrant” talent pool in the heart of the UK’s semiconductor design ecosystem.
