Solar firm Spire completes sale of semiconductor unit for $8.5 million

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Solar firm Spire completes sale of semiconductor unit for $8.5 million

Greentech Lead America: Spire, a provider of solar
photovoltaic equipment and systems, and biomedical processing services, has
sold all the assets of Spire Semiconductor’s foundry services business to
Masimo Semiconductor, a owned subsidiary of Masimo, for $8.5 million.

“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,”
said Roger G. Little, chairman and chief executive officer of Spire
Corporation.

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.

Spire
received approximately $7.2 million in cash and Masimo assumed approximately
$1.2 million in liabilities. Of the purchase price approximately 10 percent of
the cash portion was deposited into an indemnity escrow account for fifteen
months.  

Masimo has been one of Spire’s largest customers for the
past several years. The acquisition will allow Masimo to focus the operation on
its custom component requirements and accelerate technology advancements in
non-invasive blood monitoring products.

“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,” said Joe Kiani, Masimo CEO and chairman of the Board.

Last year, Spire announced expansion of its Advanced
Technology Center Lab at its corporate headquarters.

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