Nextreme Thermal, a spinout from RTI International which has developed cooling technology for use in high-performance electronics and optical devices, is being acquired by Laird Technologies.
Matt Judkins, director of marketing for Laird, told WRAL News that Nextreme would remain based in Durham. He also said no layoffs or changes in management were expected as part of the deal.
The deal isn’t costing Laird, a global technology firm, much up front.
Exactly $1.
However, earnouts based on sales and performance could be worth as much as $60 million over a four-year period beginning in 2014, Laird disclosed.
Investors in Extreme include RTI, Aurora Funds in the Triangle, the CIA investment arm known as In-Q-Tel, Chart Venture Partners, Redshift Venture Partners, and Harris & Harris Group as well as Japan-based ITOCHU Corporation and ITOCHU Technology Ventures.
Nextreme is expected to lose $3 million this year as it prepares for “mass production,” Laird said.
The companies had worked together over the past year in what Judkins described as a “good partnership” and that a merger of the two firms “seemed the next logical step.”
The resources of the combined firms will enable Nextreme to further commercialize its technology, Judkins said.
Nextreme operates what it calls “the largest commercial thin-film thermoelectric manufacturing facility in the United States, using fully scalable semiconductor processes to deliver new functionality at the chip, package and system levels.”
Laird focuses on components and solutions that protect electronic devices from electromagnetic interference and heat, and that enable connectivity through wireless applications and antennae systems, the firm’s website says.
Nextreme raised more than $40 million in financing over the years since spinning out of RTI in 2004.
“Nextreme is the next generation in technology for thermoelectrics. It can fundamentally change the way we cool electronics at the most integrated levels while being produced in large volumes,” said Laird Chief Executive Officer David Lockwood. “This significant shift in technology will also enable new applications such as energy harvesting.
“Nextreme is an excellent fit with our business growth strategy. Through this acquisition we will combine the most innovative technology with our market presence and ability to scale operations, to deliver added value to our customers and enable us to move into new segments.”
Nextreme’s technology was developed at RTI.
“Transitioning this technology to Laird is a testament to RTI’s dedication to turning knowledge into practice,” said Jim Gibson, chief operating officer at RTI, in a statement. “This technology has the potential to significantly improve electronics and photonics in a variety of markets, including energy and health care. We are pleased that Laird is planning to carry this technology forward to worldwide market opportunities.”
