NEW YORK (AP) - Cambridge Display Technology Inc. said Tuesday it agreed to be acquired by its Japanese licensee Sumitomo Chemical Co. for about $285 million in a bid to expand the adoption of its technology for lighting and flat panel displays.
Shareholders of U.K.-based Cambridge Display, which develops technologies based on polymer organic light emitting diodes, will receive $12 per share cash for each share held, a premium of about 95 percent over Monday's closing price. Shares of the company have traded between $4.26 and $7.88 over the past 52 weeks.
Cambridge Display managers and other shareholders owning about 43 percent of the company have already agreed to vote their shares in favor of the transaction.
In a statement, Cambridge Chairman and Chief Executive David Fyfe said, ''Cambridge Display and Sumitomo Chemical have developed a more integrated and closer relationship since Sumitomo acquired a license to certain intellectual property from CDT in 2001, culminating in the formation of a 50/50 joint venture in 2005 to develop, manufacture and sell P-OLED materials to CDT licensees and others.''
Sumitomo Chemical, based in Tokyo, is one of Japan's largest chemical producers.
The merger is subject to shareholder approval and other conditions and is expected to close by year-end.