IDG Capital Partners, a China-focused investment firm, is buying Memsic Inc. (Nasdaq: MEMS), a semiconductor technology company, for about $88.5 million.
The purchase price works out to about $4.23 per share in cash. Memsic’s shares closed at $1.74 on Nov. 20, the last trading day before it announced a proposal.
IDG is tapping into its second joint fund with private equity firm Accel Partners, IDG-Accel China Capital II LP, to facilitate the deal.
IDG-Accel is also partnering with affiliate MZ Investment Holdings Ltd. on the transaction. Doha, Qatar-based MZ already owns 19.5 percent of Memsic’s outstanding common stock.
Memsic, headquartered in Andover, Mass., provides semiconductor sensors for circuit design. Its products include accelerometers, magnetic sensors and electronic compasses, which are measurement units for the industrial and aviation industries.
Foley Hoag LLP acted as Memsic’s legal counsel. RBC Capital Markets LLC was financial adviser to IDG’s special committee, while Richards Layton & Finger PA was special legal counsel to the committee. Skadden Arps Slate Meagher & Flom LLP was IDG’s legal counsel.