Reading time ( words)
Cohu, Inc., a global leader in back-end semiconductor equipment and services, announced that it has entered into a definitive agreement with Mycronic AB (MYCR.ST) (Mycronic), a Swedish high-tech company engaged in the development, manufacture and marketing of production equipment, under which Mycronic will acquire atg Luther & Maelzer GmbH and other affiliated entities and assets related to Cohu’s Printed Circuit Board Test Group (PTG) business. The purchase price of approximately $125 million will be paid in cash at close, subject to adjustment for certain closing accounts. Cohu intends to use the expected net cash proceeds of approximately $95 to $100 million, after estimated transaction costs and taxes, to repay outstanding principal on its term loan facility. No regulatory approvals are expected to be required and the transaction is expected to be completed by the end of June 2021, subject to customary closing conditions.
The PTG business reported sales for the last twelve months, as of March 27, 2021, of $52.9 million. Cohu does not expect to update its guidance for the second quarter of 2021 ending June 26, 2021.
Luis A. Müller, Cohu’s President and Chief Executive Officer, stated: “PTG has been a valued part of our business since joining Cohu with the Xcerra acquisition in 2018, and I want to thank all employees for their contributions to the company. Combining forces with Mycronic creates additional scale in the PCB market segment and greater opportunities for PTG’s success in the future, while enabling Cohu to focus on semiconductor equipment and services businesses.”