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MEMS remains an attractive industry for financial and strategic investors

Yole Développement

 

Several market segments are well-positioned for high growth in the coming years as the MEMS industry continues to expand. Companies founded in early 2000 have now entered the top 30 MEMS manufacturers alongside the large established players.

From the latest cell phones and gaming devices to vehicle safety and environmental sensing, the MEMS industry now provides mission critical functionality for a vast array of products and applications in defense, automotive, medical, industrial, communication and consumer markets. The MEMS industry contains several high-growth opportunities for financial and strategic investors. “Our analysis shows that in the past 3 years, more than 35 strategic investments have been made through acquisitions and VC’s have invested more than $800M in the industry” explained Géraldine Andrieux Gustin, Partner at Yole Finance. VCs are still actively investing in next generation solutions, especially in the cleantech sector.

Figure: M&A MEMS transactions

As the economic cycle moves towards recovery, M&A activity will accelerate too. Now is the time for MEMS companies to adapt their growth strategy in leveraging their value with the help of Yole Développement’s report. The economic cycle will impact the financial transaction market. Opportunities will arise rapidly for MEMS companies as investors seek to solidify positions necessary for future growth. Execution of corporate strategy will require additional capital. “More than ever, companies will need to consider their value creation process while considering acquisition, selling out or consolidation strategies. They will need to leverage their corporate value with the best dedicated business model”, said Géraldine Andrieux Gustin.

Yole Développement’s analysis provides MEMS companies with key data to conduct their own benchmarking and first assessment of their company’s value. Companies and investors will also have a clear picture of what happened in the MEMS area with a detailed database of more than 400 financial transactions since 1998.

For more information, please contact Géraldine Andrieux Gustin.