Expands test and measurement leadership in high-growth Advanced Packaging and MEMS applications
FormFactor, (FORM) announced the acquisition of FRT, based in Germany. FRT is the one of the fastest growing metrology suppliers in the semiconductor industry, with revenues expanding at more than 75% compounded annual growth rate since its inception in 2016 to 2018. This acquisition strengthens FormFactor’s leadership in test and measurement by expanding its addressable market into 3D surface metrology and extending the optical applications scope of its existing Engineering Systems business.
“The acquisition of FRT adds to FormFactor’s diversified portfolios of essential semiconductor test and measurement products. It’s one of FormFactor’s strategic priorities to expand our leadership in advanced packaging and MEMS applications, and we are excited to welcome Dr. Thomas Fries and the FRT team to the FormFactor family,” said Dr. Mike Slessor, CEO of FormFactor.
The acquisition of FRT:
*Expands FormFactor’s addressable market by $150 million
* Accelerates the company’s growth in the fast-growing Advanced Packaging and MEMS applications
* Adds to FormFactor’s test and measurement system product portfolio, complementing its consumable wafer test probe products
“It is an exciting time for FRT to join the FormFactor team,” said Dr. Thomas Fries, CEO of FRT. “We look forward to leveraging FormFactor’s well established global infrastructure and customer relationships to further accelerate our planned growth, while continuing to execute our new product development roadmap.”
In accordance with the terms of the transaction, FormFactor paid €19.7 million in cash for the acquisition. Up to €10.3 million of additional cash consideration may be payable subject to the performance of the acquired business in 2020. This acquisition is expected to be immediately accretive to earnings on a non-GAAP basis. Straightward Holding GmbH acted as the M&A advisor to FRT GmbH.
FormFactor, (FORM), is a provider of essential test and measurement technologies along the full IC life cycle – from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.
FRT GmbH supplies 3D surface metrology for research and production. With micro- and nanometer resolution, the non-contact and non-destructive measuring systems which have received many awards, measure optionally fully automatic data, topography, structure, step height, roughness, wear, thickness variation, film thickness and many other parameters. For more information, visit the Company’s website at www.frtmetrology.com.
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date hereof, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to statements regarding future financial and operating results, customer demand, conditions in the semiconductor industry, and growth opportunities, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” and “continue,” the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements, including with respect to the performance, customers, products and technologies of acquired businesses: changes in demand for the Company’s products; customer-specific demand; the speed of customer implementation of new technologies; industry seasonality; risks to the Company’s ability to realize operational efficiencies; changes in macro-economic environments; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.
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