Magnachip Semiconductor announced on Friday that it agreed to be acquired by private equity investment company Wise Road Capital Ltd. at a price of $29 per share, for a total price of approximately $1.4 billion.

After the transaction is completed, Magnachip’s management team and employees are expected to continue to hold their positions, and the company will still be headquartered in South Korea.

Magnachip Semiconductor was established in October 2004. When the company was founded, it had one 5-inch, one 6-inch, and three 8-inch wafer fabs. The 5-inch fab was closed in 2007 and the 6-inch fab was closed in 2015. In 2016, Magnachip merged two 8-inch wafer fabs (FAB4 and FAB5) in Cheongju to specialize in the foundry business, with a monthly foundry capacity of approximately 100,000 wafers.

The main customers of Magnachip's standard products are Samsung and LG, which accounted for approximately 33% of their total sales in 2018 and 95% of the revenue of the display solutions division.

Magnachip CEO YJ Kim said: "This transaction is in the best interests of all our stakeholders, including shareholders, customers and employees. This will provide an excellent opportunity to accelerate our MX 3.0 growth strategy. In view of their deep industry expertise, Wise Road Capital is an ideal partner for Magnachip. We look forward to working with them to plan the next stage of development for our company."