Electro Scientific Industries, Inc. today announced it had signed a definitive agreement to acquire the Semiconductor Systems business of GSI Group, Inc., a supplier of precision photonics, laser-based solutions and precision motion devices to the medical, industrial, scientific, and electronics markets. Based in Bedford, Massachusetts, the Semiconductor Systems business provides products in laser marking and trimming of semiconductor wafers and hybrid circuits. The parties expect the transaction to close within thirty days.
Both ESI and Semiconductor Systems have decades of laser-based wafer processing experience. The Semiconductor Systems’ wafer marking products are positioned to capitalize on the industry-wide transition to 450mm wafer diameters and are complementary to ESI’s commitment to enabling 3D semiconductor packaging.
This acquisition will add approximately $20-30 million of annual revenue to ESI. It is expected to add $0.05 to $0.10 to non-GAAP earnings per share in the first year.
“The GSI Semiconductor Systems business is an excellent operational fit with ESI. The business brings a strong technical team, broadens our revenue base with our semi customers, and strengthens our Semiconductor Division,” stated Nick Konidaris, CEO of ESI. “With complementary capabilities but almost no product overlap, this acquisition broadens our product portfolio and allows ESI to provide a more complete set of laser-based manufacturing solutions to our semiconductor customers.”
“We are pleased to complete this transaction, which ultimately enables GSI to focus our growth investments on our OEM component businesses,” said John Roush, CEO of GSI. “We believe this outcome is the best result for customers, employees and shareholders of both companies. The GSI team will work closely with our counterparts at ESI to ensure a smooth transition of ownership of the Semiconductor Systems business.”
ESI is a leading supplier of innovative, laser-based manufacturing solutions for the microtechnology industry. Their focus is on developing the precise structuring of micron to submicron features in electronic devices, semiconductors, LEDs and other high-value components. Founded in 1944, ESI is headquartered in Portland, Ore., with global operations from the Pacific Northwest to the Pacific Rim.