Sensor and mixed-signal specialist AMS announced the closing of the deal for 69 percent of Osram on July 9 with a transaction value of €2.7 billion. AMS had revenues of about US$2 billion in 2019 while Osram was at about $4 billion.
AMS is unlikely to add so much revenue organically and so is likely to still on the acquisition trail.
"Today is a vital milestone on our path to combine AMS and Osram into a worldwide leader in sensor solutions and photonics," said Alexander Everke, CEO of AMS, in a statement released at the time of the closing. AMS said it would announce further steps on the integration of AMS and Osram in due course.
However, in the short term the companies will report separately. AMS, which is heavily exposed to Apple smartphones, has been relatively bullish about its outlook for 2Q20 and 2H20. Meanwhile Osram, heavily exposed to automotive, is expected to announce a sharp drop in sales.
Nonetheless Osram represents part of AMS' strategy to reduce its exposure to the highly competitive and volatile consumer electronics.
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