Integrated Micro-Electronics, Inc. (IMI), a member of the Ayala group, and Narra Venture Capital II (NarraVC), are jointly acquiring a 67 percent stake in PSi Technologies Inc. (PSi) for $30 million.

PSI is a focused independent semiconductor assembly and test-service provider to the power semiconductor market while IMI is a leading provider of electronics manufacturing services (EMS) to the world's key original equipment manufacturers (OEMs).

In a disclosure to the Philippine Stock Exchange Monday, IMI said it has signed an agreement with PSI and other shareholders for the acquisition wherein IMI will own 56 percent of PSI and NarraVC 11 percent of PSi.

“With the growing convergence of power semiconductor assembly and test services and EMS, the impending purchase of IMI of PSi Technologies will enable the IMI group to enhance its service offering to its OEM customers,” IMI president Arthur Tan said.

He added that “the acquisition will strengthen PSi Technologies toward growing and developing its business while enhancing the prospects of offering an integrated hybrid power solution in a multichip module (MCM) that contains the advanced manufacturing technologies of IMI and PSi Technologies.”

Tan said the MCM technology addresses the trend in miniaturization of electronic devices.

IMI chief finance officer Sherisa Nuesa said “the new shareholders (IMI and NarraVC) will inject fresh equity into PSi Technologies, and, while the latter's contribution to IMI is not expected to be significant for the balance of the year, PSi Technologies has posted healthy revenues to date.”

She added that PSI is poised for a turnaround by 2011 with a stronger capital and shareholder base, and on expectations of continuing growth in the power semiconductor and MCM markets where PSi Technologies has established a solid niche presence.

Narra Venture Capital (NarraVC) is a venture capital investment group that manages funds of Limited Partners such as Dado Banatao, Ayala Corporation, First Philippine Holdings and the Cebuana Lhuillier Group with Dr. Paco Sandejas as its Managing Partner.

Its venture capital funds are invested in high-technology entrepreneurs and companies (mostly private) that provide opportunities for accelerated growth due to unique technological advantages.

It also helps in bringing the Philippines and Asia to these investments through introductions to markets or partners. NarraVC is represented in the Philippines by Narra-BGN Ventures.