Irvine Sensors to Get IBM Assembly Line

Irvine Sensors Corp. said Wednesday that it has secured funds to purchase an International Business Machines Corp. production line that makes stacked-chip assemblies, or cubes.

Irvine Sensors will pay $6.5 million to purchase IBM’s cubing line, which was created in 1992 at its plant in Essex Junction, Vt., as part of an alliance between the two companies. Under terms of the agreement, Irvine Sensors said it can operate the line within IBM through 1998.

Funds for the purchase come from about $11 million in subordinated, convertible debentures supplemented by bank debt. The company plans to use $4.5 million for working capital. Irvine Sensors develops and makes sensing devices and high density electronics packages for military and commercial systems, and low-power integrated circuits.