SEALSQ Corp ( LAES ) shares are trading higher Thursday after the company announced it entered exclusive negotiations to acquire 100% of French ASIC design firm IC’ALPS for €12.5 million.

What To Know: The move, intended to strengthen SEALSQ's ( LAES ) semiconductor and post-quantum hardware portfolio, also lifted shares of its affiliate WISeKey.

The Geneva-based company confirmed it signed a Letter of Intent with IC’ALPS and its shareholders to move forward with the transaction, which remains subject to the signing of a Share Purchase Agreement and approval by the French Ministry of the Economy. Under the agreement, SEALSQ ( LAES ) would pay €10 million in cash and €2.5 million in SEALSQ ( LAES ) ordinary shares based on a 90-day volume-weighted average price. The deal also includes a potential €4 million earn-out in shares, contingent on IC’ALPS surpassing €11 million in revenue by the end of 2025.

The acquisition would add about 100 employees across IC’ALPS locations in Grenoble and Toulouse. SEALSQ ( LAES ) noted that IC’ALPS had unaudited 2024 revenue of €9.76 million but posted a net loss of €2.02 million under French GAAP. Adjusted figures excluding internal sales to SEALSQ ( LAES ) widen the 2024 loss to over €2.6 million. The company warned that a transition to US GAAP could result in further material changes.

While IC’ALPS posted a small profit in 2023, revised figures excluding SEALSQ ( LAES )-related revenue point to a loss of approximately €850,000. Despite these losses, SEALSQ ( LAES ) appears focused on the long-term strategic value of the acquisition, particularly as demand for ASIC design expertise increases.

LAES Price Action: Sealsq Corp ( LAES ) shares were up 8.70%at $3.75 at the time of writing, according to Benzinga Pro.

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