© mikael damkier Business | May 08, 2018

Cohu to acquire Xcerra

Cohu, Inc. and Xcerra Corporation have entered into a definitive merger agreement under which Cohu will acquire Xcerra for a combination of cash and stock.
The acquisition is expected to place Cohu among the top players in semiconductor test, with combined sales for Cohu and Xcerra in excess of USD 800 million for the last twelve months.

The transaction values Xcerra at USD 13.92 per share, or approximately USD 796 million in equity value, with a total enterprise value of approximately USD 627 million, a press release reads.

"This proposed acquisition is a powerful combination of two complementary companies that will accelerate our strategy to diversify our product offerings and strengthen Cohu’s position as a global leader in back-end semiconductor equipment,” Luis MĂĽller, Cohu's President and CEO, says in the press release.

The acquisition of Xcerra increases Cohu’s addressable market to approximately USD 5 billion across handlers, contactors, test and inspection, Mr. Müller explains. This will further

Commenting on the proposed acquisition, David Tacelli, Xcerra’s President and CEO, stated, "We are very pleased to be joining forces with Cohu to create a global leader in back-end semiconductor test. Together, we will be an even stronger and more competitive company with far reaching long-term benefits to our customers and employees.”

The transaction is expected to be immediately accretive to non-GAAP earnings per share and generate over $20 million of annual run-rate cost synergies within 2 years of closing, excluding stock-based compensation and other charges.

The transaction is expected to close in the second half of calendar year 2018, subject to approval by both companies’ respective shareholders, antitrust regulatory approvals and other customary closing conditions.
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