FEI Announces Agreement to Acquire DCG Systems
October 27 2015 - 4:05PM
FEI Company (NASDAQ:FEIC) and DCG Systems, Inc. today announced a
definitive agreement under which FEI would acquire DCG for $160
million in an all cash transaction. DCG is a leading supplier of
electrical fault characterization, localization and editing
equipment, serving process development, yield ramp and failure
analysis applications for a wide range of semiconductor and
electronics manufacturers. Headquartered in Fremont, California,
DCG is a profitable private company and was the recipient of
Deloitte’s Technology Fast 500 award in 2013 and 2014.
The deal combines FEI’s leading physical failure
analysis capabilities for the semiconductor lab with DCG’s
complementary portfolio of electrical failure analysis solutions.
DCG’s offerings expand FEI’s served available market through the
addition of optical imaging, thermal imaging and nano-probing
technologies. The combined company’s solutions will offer a more
complete workflow for customers as they deal with the increasing
complexities from process development to advanced 3D
packaging.
“The acquisition of DCG expands FEI’s presence
and capability in the semiconductor lab and enhances our ability to
provide a complete workflow solution,” commented Don Kania,
president and CEO of FEI. “The combination brings together leaders
in physical and electrical failure analysis and will enable our
customers to better connect workflows to improve time to data and
efficiency.”
“Together with FEI we have a tremendous
opportunity to offer our customers an integrated defect analysis
solution,” commented Israel Niv, CEO of DCG. “The DCG team is
excited to join forces with FEI and tap into FEI’s strong global
presence and significant R&D capabilities to drive further
penetration of DCG’s leading electrical failure analysis solutions.
We look forward to working together with FEI to provide integrated
solutions to help our customers successfully execute on their
future technology roadmaps.”
DCG generated revenue of $76 million in its
fiscal year ended January 31, 2015. The transaction is expected to
be slightly accretive to FEI’s 2016 GAAP EPS. FEI intends to
fund the acquisition with cash on hand.
The transaction is expected to close by the end
of 2015 and is subject to certain regulatory approvals and
customary closing conditions.
Safe Harbor Statement
This news release contains forward-looking
statements that include statements regarding growth expectations,
market opportunities and earnings from the acquisition of DCG by
FEI. Factors that could affect these forward-looking statements
include but are not limited to failure of the electrical failure
analysis market to grow as expected, failure of the products and
technology to perform as expected and achieve anticipated results,
problems in integrating the operations of DCG and FEI, potential
intellectual property issues in electrical failure analysis, and
failure of the combined company sales and distribution organization
to successfully sell products. Investors should also refer to our
Form 10-K, Forms 10-Q, Forms 8-K and other filings with the U.S.
Securities and Exchange Commission for additional information on
these factors and other factors that could cause actual results to
differ materially from the forward-looking statements. FEI assumes
no duty to update forward-looking statements.
About FEI
FEI Company (Nasdaq:FEIC) designs, manufactures
and supports a broad range of high-performance microscopy workflow
solutions that provide images and answers at the micro-, nano- and
picometer scales. Its innovation and leadership enable customers in
industry and science to increase productivity and make breakthrough
discoveries. Headquartered in Hillsboro, Ore., USA, FEI has over
2,800 employees and sales and service operations in more than 50
countries around the world. More information can be found at:
www.fei.com.
About DCG
DCG Systems, Inc. is the industry’s leading
supplier of electrical fault characterization, localization and
editing equipment, serving process development, yield ramp and
failure analysis applications for a wide range of semiconductor and
electronics manufacturers. With more than 1500 systems deployed
worldwide, DCG Systems serves customers worldwide from its
headquarters in Fremont, California and field offices in the United
States, Japan, Taiwan, Korea, Malaysia, Singapore, Israel and
Germany. For more information about DCG Systems, visit
www.dcgsystems.com.
For more information contact:
FEI Company
Jason Willey
Investor Relations Director
(503) 726-2533
jason.willey@fei.com
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