KUALA LUMPUR (Nov 28): JF Technology Bhd (KL:JFTECH) entered into a deal on Friday to acquire Singapore-based Transcend group to broaden its product offerings and expand market reach, as it seeks to deepen its foothold in the regional semiconductor value chain.
In a bourse filing, JF Tech said its wholly-owned subsidiary, JF International Sdn Bhd, is buying Transcend from six individual vendors for S$6 million (RM19.1 million).
The Transcend group comprises Transcend Technologies (S) Pte Ltd (TTS) and Transcend Tech Asia Pacific Pte Ltd (TTAP), as well as TTAP’s 95.5%-owned Philippine subsidiary, Transcend Technologies Inc.
The deal comes with a three-year profit guarantee from the sellers and marks a renewed commitment to the transaction, almost a year after JF Tech first entered into a non-binding letter of intent to acquire the entities at the same price.
JF Tech said the acquisition is expected to strengthen its position in semiconductor assembly and test equipment, complementing its core business of designing and manufacturing test probes and test socket products for the semiconductor industry.
Transcend, meanwhile, specialises in the export manufacturing of test socket laser cleaners, as well as the development and manufacturing of high-precision parts for the semiconductor, aerospace and medical sectors.
The Singapore-based group's unaudited net profit stood at US$792,000 (RM3.3 million) for the period from Jan 1 to Oct 31, 2025.
JF Tech managing director Datuk Foong Wei Kuong said the acquisition complements the company's existing business, as it can leverage Transcend’s proven track record and strong reputation within the Southeast Asia semiconductor space.
"Transcend’s specialisation in converting pogo solutions from spring probe solutions into rubber socket solutions allows us to penetrate new customer segments and opens up another growth dimension,” he said in a statement.
"Given Transcend’s specialisation in marketing and its backend engineering and support team, it would further strengthen our position in the semiconductor value chain, specifically on semiconductor assembly and test equipment and thus, enhance the group’s comprehensive turnkey services to semiconductor companies worldwide," Foong added.
According to the filing, both JF Tech and the individual sellers will jointly advance S$836,000 (RM2.66 million) in working capital to the Transcend group within 60 days of completion, repayable after six months subject to the group’s cash position.
The purchase consideration will be funded entirely through internally generated funds and will not affect JF Tech’s share capital or substantial shareholders’ equity, the company said.
The transaction is expected to be completed by the end of 2025.
Shares of JF Tech closed down one sen or 1.98% to 49.5 sen on Friday, valuing the company at RM458.9 million. The counter has fallen more than 38% year to date.