Vertical Circuits, Inc.

Vertical Circuits, Inc.

Vertical Circuits, Inc., Scotts Valley, California, is a supplier of high density semiconductor memories and services to commercial, aerospace, and military customers. VCI was formed by the merger of TRW Components International, a unit of TRW, Inc., now a subsidiary of Northrop Grumman Corporation, and Cubic Memory Inc. The Aerospace Engineering Services Division, located in Torrance, California, has three business units: a supplier of high reliability electronic components and design support services to the space industry; a provider of custom, turnkey ground stations for the commercial space industry; and, a developer of aerospace qualified, high density semiconductor memories.

Admiralty Partners, Inc. Los Angeles, California is a private investment firm which invests in the aerospace, defense, and federal information technology industries.

OEM Capital is a mergers and acquisition firm with its primary focus on electronics, communications and information technology companies. As a member firm in the International Network of M&A Partners, it exposes clients to opportunities in every major technology market in the world.

OEM Capital was engaged to assist VCI in finding a buyer for its AES Division, an ongoing part of VCI’s strategy to address and focus on high growth, high volume commercial opportunities for semiconductor die stacking technologies, services, and products for the computer, telecom, and consumer electronics markets. Because of the varied nature of the AES Division’s business units and the close sharing of resources between them, it was impractical to offer each unit separately. We prepared marketing materials to best reflect the business opportunity, contacted companies and private investment firms in the US and abroad who could have a serious interest, and initiated a competitive sale process.

Our success with Vertical Circuits illustrates that superior valuations can be realized for the selling shareholders by a well executed approach to a sale or divestiture by merger and acquisition professionals who are knowledgeable about the industry and the intentions of its participants.