Credence Acquires Optonics

Online staff -- 11/27/2002

Credence Systems Corp. today announced it has entered into a definitive agreement to acquire Optonics Inc., an emission-based optical diagnostics and failure analysis supplier based in Mountain View, Calif.

The deal is anticipated to be an all-stock transaction for about 2 million Credence shares, worth about $23 million.

The transaction is subject to various closing conditions, including approval by Optonics' shareholders. But Credence is optimistic and said that Optonics' shareholders, who hold about 75 percent of the outstanding shares, have agreed to vote their shares in favor of the transaction. Credence anticipates the transaction will close in its current fiscal quarter.

"The acquisition of Optonics marks the latest move toward the company's vision of being the compelling supplier of integrated test solutions for semiconductor devices from design through production," said Graham Siddall, Credence's chairman and CEO, in a statement. "We believe Optonics' leading technology in high-speed optoelectronic IR detection and imaging provides unique diagnostic capabilities to our engineering validation customers as they introduce today's complex devices to market."

Among Optonics' products is its EmiScope system, featuring multigigahertz bandwidth and an extendible infrared diagnostic platform that allows the measurement of switching events in advanced flip-chip package designs and complex multilayer sub-0.15 micron devices, the company said.

"Advanced IC packaging technology is driving the need for more sophisticated backside (through-substrate) optical diagnostic solutions such as Optonics' EmiScope," said Israel Niv, founder, president and CEO of Optonics, in a statement. "We believe the combination of the EmiScope with Credence's IMS Vanguard and Gemini MS engineering validation testers will deliver the most powerful diagnostic integrated package at first silicon, design optimization and during failure analysis activities."

Meanwhile, Credence announced Tuesday that it sold its interface technology subsidiary, Dimensions Consulting Inc., to an undisclosed customer. The company also posted increased losses of $112 million for its fiscal Q4 , which ended Oct. 31.

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