Xcerra elaborates on its pending acquisition by Cohu
Cohu Inc.’s pending acquisition of Xcerra is not expected to impact customers’ day-to-day operations, according to a letter from Xcerra to its customers. “The goal is to make this acquisition process seamless to your operations and your customer experience with Xcerra as we work to build a new company focused on increasing your yield, reducing your cost of test, and accelerating your time to market,” the letter said.
Luis Müller, Cohu’s president and chief executive officer, added, “Both Xcerra and Cohu greatly appreciate the partnership with our customers to provide leading edge solutions for semiconductor test and inspection. This acquisition creates a powerful combination of two complementary companies with the depth and breadth of the combined product portfolios, engineering, and product development resources. Additionally, we will be able to provide a broader range of solutions as well as global customer support that will enable Cohu to deliver comprehensive back-end solutions that better meet your future needs. I am dedicated to maintaining and increasing the quality of innovation, support, and service that you have come to expect. I look forward to increasing our interactions in the near future, upon completion and closing of the transaction.”
Cohu and Xcerra earlier this month announced they have entered into a definitive merger agreement pursuant to which Cohu will acquire Xcerra for a combination of cash and stock. The companies said the acquisition is expected to make Cohu a global leader in semiconductor test, with combined sales for Cohu and Xcerra in excess of $800 million for the last twelve months.
“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. The depth and breadth of the combined product portfolios, engineering, and product-development resources, as well as the global customer support platforms will enable us to deliver comprehensive semiconductor back-end solutions that better meet the future needs of our customers,” commented Müller in a press release.
Müller continued, “The acquisition of Xcerra increases our addressable market to approximately $5 billion across handlers, contactors, test, and inspection, further strengthening our ability to fully capitalize on the secular growth opportunities in the automotive, IoT, industrial, and mobility markets. We are excited to welcome the Xcerra team to Cohu and look forward to an efficient completion of the transaction, with a focus on delivering long-term value to our customers, employees and shareholders.”
David Tacelli, Xcerra’s president and CEO, added, “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. I am extremely proud of what the Xcerra team has accomplished over the past several years and look forward to the exciting possibilities we can achieve together with Cohu.”
Cohu is a supplier of semiconductor test and inspection handlers, MEMS test modules, test contactors, and thermal subsystems used by global semiconductor manufacturers and test subcontractors. For more information, visit http://www.Cohu.com/.
Xcerra comprises four businesses in the semiconductor and electronics manufacturing test markets: atg-Luther & Maelzer, Everett Charles Technologies, LTX-Credence, and Multitest. The combination of these businesses creates a company with a broad spectrum of semiconductor and PCB test capabilities and the ability to deliver fully integrated semiconductor test cell solutions. Xcerra addresses the broad, divergent requirements of the mobility, industrial, automotive and consumer end markets, offering a comprehensive portfolio of solutions and technologies, and a global network of strategically deployed applications and support resources. Additional information can be found at www.Xcerra.com or at each product group’s website www.atg-lm.com, www.ectinfo.com, www.ltxc.com, and www.multitest.com.