Cascade Microtech Inc of Beaverton, OR, USA, which provides equipment enabling precision contact, electrical measurement and test of wafers, ICs, IC packages, circuit boards and modules as well as MEMS, 3D TSV and LED devices, has acquired ATT Advanced Temperature Test Systems GmbH of Munich Germany. ATT Systems provides enhanced thermal solutions for wafer testing over an expanded temperature range (typically from -60°C to 300°C). Cascade believes that the acquisition strategically positions the combined companies for future system development and access to larger markets. ATT Systems’ management team will remain with the firm in Munich.
The purchase price for the acquisition includes about €8.4m in cash (net of about €0.4m of acquired cash), about 1.6 million shares of Cascade Microtech common stock, and deferred payments of about €0.8m. The purchase price is subject to certain post-closing adjustments. The shares of common stock issued in the transaction are subject to a one-year lock-up agreement.
“As Cascade Microtech enters new markets and expands its portfolio to address new technology nodes, we are seeking innovations in instrumentation and sub-systems,” says president & CEO Michael Burger. “This acquisition gives us access to thermal system capabilities, both in design expertise and through ATT Systems' high-performance products, which we expect will complement our development of next-generation systems for customers demanding the highest performance at thermal extremes, while addressing new applications such as 3D structures and FinFETs. ATT Systems provides a key component of our strategic plan and supports our customers' rapidly accelerating test requirements,” he adds.
“This acquisition strengthens Cascade Microtech’s financial position,” says chief financial officer Jeff Killian. “The acquisition provides a basis for revenue growth, market expansion and vertical integration, and we expect that it will have an immediate and positive contribution toward our success model,” he adds. “Based upon the unaudited, trailing 12-months' performance of ATT Systems, the purchase price for the company approximates six times EBITDA,” he Killian continues. “Before the effects of purchase accounting, we expect this transaction to be accretive to earnings beginning in the fourth quarter of 2013, and will provide additional support to achieve our success model which includes EBITDAs of greater than 20% of revenue.” Going forward, ATT Systems will be reported with Cascade Microtech's Systems segment.
