Another name goes down to a Chinese investment:
A little history.
A company named Dover had two gravity feed test handler companies Rasco and Multitest.
Dover knew the future would be slow in handlers and wanted to sell off both divisions
Multi test was #1 in gravity feed test handlers AND WANTED TO GO AFTER DELTA WITH PICK AND PLACE TEST HANDLERS.
Cohu bought Rasco (then the #2 gravity handler) from Dover and created the next generation gravity test handler that featured parallel testing - something they had mastered with in their pick and place handlers.
Leap frog 5 years later and Rasco is now the number 1 gravity handler.
Xcerra paid all the money for the #1 multitest from Dover and Rasco proceded to win market share from Multitest as they attempted to take Delta's pick and place business (which did not materialize).
Xcerra is now up for sale and a nother competitive victim of Cohu's now complete array of all types of handlers: gravity, pick and place, and turret.
It has been a slug fest for market share this last webcast Cohu announced it has gaine 2 % market share and apparently the competitors are hurting.
Maybe Advantest will be interested in the shopping for excerra - I don't think they want to buy the other businesses.
Cohu will continue their market share gains and become the global leader of cost effective test handlers.
The world is just beginning to understand that if you can test cheaper than everyone else - you have a in house advantage over ALL chip makers.
Some day that cost advantage over every one will be discovered and a huge premium will be paid to acquire Cohu and it brilliant pallet of test handlers.
When that happens - I'm buying my big boat. <smile>
Great job Mueller and Donahue!!
Bob
April 10, 2017
Xcerra Corporation to be Acquired for Approximately $580M by Unic Capital Management Co., Ltd, an Affiliate of Sino IC Capital
All cash transaction at $10.25 per sharePrivate ownership will enhance Xcerra's growth prospects and support long term investment in new and existing markets, new product development, and stronger customer relationshipsXcerra will remain a global company headquartered in Norwood, Massachusetts, USANORWOOD, Mass., April 10, 2017 (GLOBE NEWSWIRE) -- Xcerra Corporation (NASDAQ:XCRA) and Sino IC Capital Co. Ltd. today announced that Xcerra and an affiliate of Sino IC Capital , Unic Capital Management Co., Ltd., have entered into a definitive agreement under which Unic Capital Management Co., Ltd., will acquire all outstanding shares of Xcerra for $10.25 per share in cash. The transaction price represents approximately a 16 percent premium to Xcerra's average closing price over the 30 trading day period ending April 7, 2017, approximately a 28 percent premium to Xcerra's average closing price over the 90 trading day period ending April 7, 2017, and values Xcerra's equity at approximately $580 million on a fully diluted basis.
Xcerra's Board of Directors has unanimously approved the transaction. Xcerra expects no changes to the day-to-day operations of the company and expects that Xcerra's existing management will continue to run the company.
Xcerra Corporation designs and manufactures test equipment and other related products for testing semiconductors and printed circuit boards, which are used in a variety of commercial industries including consumer electronics, automotive, and industrial. Xcerra does not design or manufacture semiconductor devices; Xcerra sells test and handling equipment and related products to semiconductor designers and manufacturers who use Xcerra products to test their devices during the manufacturing process.
Dave Tacelli, president and chief executive officer of Xcerra said: "The partnership we have announced today with Sino IC Capital will deliver strong value for our shareholders and will also benefit our customers and employees. With the financial backing of such a prominent and respected private equity fund, Xcerra will be well positioned for future growth, both in new and existing markets. We believe this partnership will enable the company to make long term investments in innovation and product development as well as broaden and strengthen our customer relationships around the world."
Mr. Jun Lu, president of Sino IC Capital, added, "Xcerra's leadership team and employees have delivered quality products and innovations to their customers and the marketplace for over four decades. Our partnership with and investment in Xcerra will help build on this track record of success and accelerate the company's ability to access new markets, develop new product lines, and serve more customers. We value the entire Xcerra team and are committed to keeping the company's headquarters in Norwood, Massachusetts. Sino IC Capital and Xcerra will work closely together with regulators, in an open and transparent manner, as they evaluate the merits of the transaction."
The transaction is subject to a number of conditions, including approval by Xcerra's shareholders as well as antitrust and other regulatory approvals including from relevant authorities in China and from the Committee on Foreign Investment in the United States (CFIUS). The transaction is currently expected to close before the end of the calendar year.
The merger agreement includes a "go-shop" period, during which Xcerra will actively solicit alternative proposals from third parties for the next 35 days continuing through May 12, 2017. The merger agreement requires Xcerra to pay a termination fee of $14,250,000 to an affiliate of Sino IC Capital if Xcerra terminates the merger agreement in connection with a superior offer that arose during the go-shop period and a termination fee of $22,800,000 if Xcerra terminates the merger agreement in connection with a superior proposal that arose following the go-shop period. There can be no assurance that this process will result in a superior proposal. Xcerra does not intend to disclose developments with respect to the solicitation process unless and until its Board of Directors has made a decision with respect to any potential superior proposal.
Cowen and Company, LLC is serving as Xcerra's financial advisor and Latham & Watkins LLP is serving as Xcerra's legal advisor. Grant Thornton International is serving as Sino IC Capital's accounting advisor and Wilson Sonsini Goodrich & Rosati is serving as Sino IC Capital's legal advisor.
About Xcerra
Xcerra Corporation is comprised of 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 expertise that drives innovative new products and services, and the ability to deliver to customers fully integrated semiconductor test cell solutions. The Company 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.
About Unic Capital Management Co., Ltd. And Sino IC Capital
Unic Capital, an affiliate of Sino IC Capital, was founded in 2016. Unic Capital is a capital and asset management firm, which makes long-term investments in semiconductor and other advanced technology industries, and is dedicated to enhancing the value and performance of its investments by strengthening their financial status and operations.
Sino IC Capital mainly focuses on investments in integrated circuits and related industries. Sino IC Capital was established in August, 2014, with RMB 138.7 billion (equivalent to approximately US$20.9 billion) funds under management. Sino IC Capital is the fund manager and a shareholder of China IC Fund.
About China Integrated Circuit Industry Investment Fund Co., Ltd. or China IC Fund
China IC Fund is a market-oriented fund focusing on investment in semiconductor and related industries. China IC Fund has issued an equity commitment letter to Unic Capital pursuant to which, subject to the terms and conditions contained in the equity commitment letter, China IC Fund has committed to provide certain equity funding to Unic Capital solely for funding the merger consideration payable under the merger agreement and related costs and expenses. |
