INVESTMENT
S3 gets EUR10 million funding boost
21-12-2005
by
ACT Capital has announced it is investing EUR10 million in Irish firm S3, marking the first time S3 has raised funds outside of the company since its foundation in 1986.
S3 is an Irish-headquartered company involved in the design of computer chips for international blue-chip companies like Intel and Xilinx. It also produces communications software for mobile phones and digital set-top boxes for televisions. Its third area of operations is in the area of medical devices.
Previously the company was 90 percent owned by Philips Electronics Ireland Limited, with the remaining shares held by company founder Maurice Whelan. Although the company declined to discuss the new ownership structure, the Philips shareholding has been reduced and it appears that Whelan may have sold his stake. Although Philips' shareholding in Irish firm S3 has been reduced, the Dutch giant is still a key shareholder and partner, according to the firm's chief executive, John O'Brien.
"Philips wants to continue to access our products and services, but they want us to grow as well," O'Brien, CEO of S3 told ElectricNews.Net. "It's the best of both worlds."
Significantly, S3 -- which employs 300 people worldwide, with 185 of those based in Ireland -- will switch from being a client of IDA Ireland to being a client of Enterprise Ireland. This is because the government now considers it an indigenous exporter, rather than a subsidiary of a foreign multi-national.
Although Philips is a key customer, the majority of S3's business comes from its other clients. But Philips has been a strategic partner as well as a client, giving S3 access to both Philips' markets and clients.
"Most Irish companies would give their right arm to have Philips as a partner," O'Brien said.
The investment from ACT Capital will be used to expand the company's research efforts and to develop its sales and marketing capabilities in the Asia-Pacific region. Currently 60 percent of S3's business is in Europe, 35 percent in the US and 5 percent in the Asia Pacific region. O'Brien said that recently the company was seeing more interest in its products from markets such as Korea, Japan and China.
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