LAGUNA, PHILIPPINES – Integrated Micro-Electronics Inc., the world's 28th largest EMS company, extended its reach through an agreement to acquire EPIQ NV's subsidiaries in Bulgaria, Mexico and the Czech Republic.

IMI will pay about €43 million ($64 million) through a combination of cash and 200 million newly-issued IMI shares, representing approximately 12% ownership in common shares on a fully diluted basis. The acquisition is expected to be completed by the fourth quarter 2011.

As part of the deal, IMI will acquire five plants, three in Bulgaria totaling 279,000 sq. ft., a 194,000 sq. ft. plant in Mexico, and a 75,000 sq.. ft. plant in the Czech Republic. EPIQ retains plants in Germany, France, China and Belgium.

The move gives IMI local factories in seven nations, including its native Philippines.

"IMI is pursuing this value-enhancing acquisition to expand its customer base and to support its market specialization strategy in the automotive and industrial segments," said president and chief executive Arthur R. Tan. "As regional manufacturing picks up steam, we are expanding our operations to locations near our global customers in Europe and North America to be of better service to them.”

EPIQ chief executive Gilles Bernard will join the management team of IMI.

By acquiring the plants from EPIQ, the 49th largest electronics manufacturing services company according to the CIRCUITS ASSEMBLY Top 50, IMI likely will push into the Top 20 worldwide. EPIQ had 2010 sales of $273.7 million. It is not yet clear what the assigned revenue for the subsidiaries to be acquired was in 2010.

"IMI will grow to at least a $500 million company by 2012," IMI spokesperson Fred Blancas told CIRCUITS ASSEMBLY. "For 2011, the possible additional revenues will be determined at the closing of the deal by Q3 or Q4 of this year."

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