September 3, 2008: Tegal Corp., a designer and manufacturer of plasma etch and deposition systems, has agree to acquire Alcatel Micro Machining Systems‘ (AMMS) and Alcatel-Lucent‘s deep reactive ion etch (DRIE) and plasma-enhanced chemical vapor deposition (PECVD) products and related IP, directed at advanced 3D wafer-level packaging applications. The $5M restricted stock and cash deal is expected to close later this month. As part of the agreement, Gilbert Bellini, president of AMMS, will be appointed to Tegal’s board of directors.
Under the agreement, AMMS will continue to support its existing installed base of DRIE tools in use by MEMS and integrated device manufacturers. Tegal will continue the development of the AMMS DRIE product line, including the integration of the AMMS process modules on its recently-introduced Compact bridge platform and the completion of a 300mm process chamber. In addition, Tegal will assume responsibility for AMMS’ joint development programs with key customers, as well as research and academic institutions.
“This is an important strategic move for Tegal,” and will form the basis (with Tegal’s existing etch/deposition technologies) for a comprehensive strategy to aggressively pursue the large high-growth markets in MEMS and semiconductor device manufacturing, said Thomas Mika, chairman/president/CEO of Tegal, in a statement. “With this transaction, we believe that we can offer customers the best combination of leading-edge technology, customer support and proven systems for production applications.”
“Tegal is well-known for providing advanced processes and production tools to MEMS and semiconductor device manufacturers worldwide,” said Gilbert Bellini, president of AMMS. “I am proud to be associated with Tegal and pleased to work with the company as a director to ensure the smooth transition of the AMMS business to Tegal in the near-term, and to help guide Tegal into the rapidly expanding markets for 3D wafer-level packaging applications.”
At closing, Tegal will pay to AMMS $1M in cash and $4M worth of newly issued shares of Tegal common stock. The number of shares to be issued will be equal to $4M divided by the average of the closing sales prices of Tegal common stock for the five consecutive trading days immediately prior to the closing date of the acquisition. Completion of the transaction is subject to customary closing conditions, but expected to close on or about September 16, 2008.