Cascade acquires Suss test business
The acquisition covers all products and intellectual property related to test, including probe stations and integrated systems, engineering probes, and 3-D TSV, MEMS, LED, optoelectronic, and cryogenic technologies.
Rick Nelson, Editor-in-Chief -- EDN, January 27, 2010
January 28, 1 a.m. EST. Cascade Microtech announced this morning that it is acquiring the semiconductor test business of Suss MicroTec AG. The acquisition covers all products and intellectual property related to test, including probe stations and integrated systems, engineering probes, and 3-D TSV, MEMS, LED, optoelectronic, and cryogenic technologies. The acquisition also covers more than 100 Suss employees in facilities in Dresden and Vermont. F. Paul Carlson, chairman and CEO of Cascade Microtech, said those facilities will be maintained after the acquisition.
Risto Puhakka of VLSI Research said he sees the product lines of the two organizations as mostly complementary, although some rationalization will be required. He said that Cascade has about three-fourths market share in the probe-station business the companies both participate in, and he noted that a smooth consolidation should be very doable. He added that Cascade could benefit from the Suss test division's work in TSVs.
Under the terms of the agreement, Cascade Microtech acquires all of the outstanding capital stock of Suss MicroTec Test Systems GmbH, a wholly owned subsidiary of Suss MicroTec AG, plus other related assets. The purchase price, which is subject to a post-closing purchase price adjustment, consists of a fixed amount and an amount placed in escrow. The fixed component amounts to EUR 4.5 million ($6.3 million), of which EUR 2.0 million ($2.8 million) was paid in cash and EUR 2.5 million ($3.5 million) was paid in shares of Cascade Microtech common stock. In addition, an amount of EUR 2.5 million ($3.5 million) has been placed in escrow and will be released to the seller upon meeting certain post-sale conditions. SUSS MicroTec Test Systems GmbH revenue for 2008 was EUR 25.0 million ($35.0 million) and EUR 10.6 million ($14.8 million) for the nine months ended September 30, 2009. Cascade Microtech expects the acquisition to be accretive by the end of 2010.
"This is a key strategic move for Cascade Microtech which strengthens our product portfolio and leverages our combined resources and competencies," said Carlson. "We now have the critical mass to focus on the technical challenges our customers have in developing semiconductor processes and designing devices into the next decade. This acquisition enables us to aggressively address emerging applications such as 3-D TSV, LED, and MEMS that are on an accelerated growth curve."
"Suss's experience in 3-D, LED, and MEMS test applications is a natural complement to Cascade Microtech's legacy of innovations in semiconductor probe technology,' said Frank P. Averdung, president and CEO of Suss MicroTec, in a press release. "Being a leader in 3D bonding, we anticipate future collaboration with Cascade Microtech in order to address the complex issues in developing and testing 3D TSVs."
Carlson said that the acquisition has been driven by the trend of Moore's Law becoming "Moore's Law and More," with new technologies creating new test challenges. Those challenges, he said, relate to smaller geometries and the emergence of 3-D TSV technologies. He also cited trends toward measurement diversification to accommodate analog and RF components, passive components, high-voltage and high-power devices, and sensors and actuators. He said the combined companies could focus on precision electrical and mechanical measurements of ICs and other small structures, including 3-D devices, MEMS devices, and LED devices. He also noted that the combined organizations could provide a more robust worldwide customer-support network.
The combined organizations will serve chips design and manufacturing process engineering, wafer fabrication, and test, assembly, and packaging applications by offering engineering test systems, engineering probes and sockets, production probe cards, and production sockets.
See related article, "Cascade acquisition augments 3-D TSV efforts."
