FormFactor completes acquisition of Cascade Microtech

FormFactor, Inc. today announced that it has completed the acquisition of Beaverton, Oregon-based Cascade Microtech, Inc.

“By completing the acquisition of Cascade Microtech, FormFactor transforms into a broader test and measurement market leader with significant scale and increased diversification,” said Mike Slessor, FormFactor’s President and Chief Executive Officer. “Against a robust demand environment for the combined company’s products and technologies, we will benefit from significant financial synergies, driving improved gross margins, profitability and earnings accretion on a non-GAAP basis in the second half of 2016 and beyond,” added Slessor.

In conjunction with this acquisition, FormFactor is appointing Mr. Ray Link to its board of directors, effective June 27, 2016. Mr. Link, formerly a member of the Cascade Microtech’s board of directors, brings his significant financial and operational management experience with publicly held companies in the technology sector. He also currently serves on the board of directors of Electro Scientific Industries, Inc., and nLight Corporation.

The former shareholders of Cascade Microtech approved of the transaction on June 23, 2016. At the effective time of the acquisition, the outstanding shares of Cascade Microtech common stock were each cancelled and converted into the right to receive $16.00 in cash, without interest, and 0.6534 of a share of FormFactor common stock. The total consideration payable on the cancelled shares consists of approximately 10.5 million shares of FormFactor common stock and approximately $255.9 million in cash to former Cascade Microtech shareholders. As a result of the acquisition, Cascade Microtech shares will cease to be traded on the NASDAQ Global Market effective today, June 24, 2016.

In connection with the acquisition, FormFactor entered into a Credit Agreement with HSBC Bank USA, National Association, as administrative agent, co-lead arranger, sole bookrunner and syndication agent, and other lenders that may from time to time be a party to the Credit Agreement. Pursuant to the Credit Agreement, the lenders have provided FormFactor with a senior secured term loan facility of $150 million to finance a portion of the cash used to complete the transaction and pay fees and expenses related to the facility.

Needham & Company, LLC, acted as financial advisor and Davis Polk & Wardwell LLP acted as legal counsel to FormFactor. Stifel, Nicolaus & Company, Incorporated, acted as financial advisor and Perkins Coie LLP acted as legal counsel to Cascade Microtech.

POST A COMMENT

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

LIVE NEWS FEED

NEW PRODUCTS

NanoFocus AG introduces new inspection system for semiconductors industry
05/31/2016NanoFocus AG, the developer and manufacturer of optical 3D surface measuring technology, introduces the new measuring system µ...
Edwards launches new vacuum pumps at SEMICON China 2016
03/15/2016Edwards announced the availability of two new vacuum pump product families at SEMICON China: the iXM Series for semiconductor etch and chemical v...
Low-outgassing Faraday Isolators to improve lifetime and reliability of optical systems
02/18/2016Qioptiq, an Excelitas Technologies company introduces the LINOS Low-outgassing Faraday Isolators, the first of th...