Google To Acquire Minority Stake In VC-Backed Himax Display

Himax Technologies, Inc., a Taiwan-based manufacturer of advanced display drivers and other semiconductor products, says it has entered into an agreement with Google Inc. for the Internet giant to acquire a minority stake in its subsidiary, Himax Display Inc.

The valuation of the investment is not disclosed.

Google will purchase preferred shares in Himax Display that will give it a 6.3% stake. Google also has an option to buy additional preferred shares at the same price within one year from closing. If exercised in full, Google will own a total of up to 14.8% of Himax Display.

Himax Display will use the investment to expand and improve production for high tech products such as Google Glass, a wearable computer with an optical head-mounted display being developed by Google. It will also pay back loans from its parent company.

Google will join Himax Display’s core shareholders including venture funds KPCB Holdings, Khosla Ventures and Intel Capital.

Himax Technologies currently holds 81.5% of its subsidiary and will remain a major shareholder after the Google deal.

Under the Agreement, Himax Technologies will invest additional capital in its subsidiary to fund its ongoing capacity expansion.

China Expert network