ESI Acquires Semiconductor Systems Business of GSI Group
PORTLAND, Ore. -- April 10, 2013
Electro Scientific Industries, Inc. (NASDAQ: ESIO), a leading supplier of
innovative laser-based manufacturing solutions for smart consumer electronics
and other microtechnology industries, today announced it had signed a
definitive agreement to acquire the Semiconductor Systems business of GSI
Group, Inc. (NASDAQ: GSIG), a global leader and supplier ofprecision
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 industry-leading
products in laser marking and trimming of semiconductor wafers and hybrid
circuits. The parties expect the transaction to close within thirty days.
The acquisition brings together two of the preeminent providers of laser
manufacturing systems serving the semiconductor industry. With decades of
experience, both ESI and Semiconductor Systems are technological leaders in
laser-based wafer processing. The Semiconductor Systems’ wafer marking
products are positioned to capitalize on the industry-wide transition to 450
millimeter 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.”
About ESI, Inc.
ESI is a leading supplier of innovative, laser-based manufacturing solutions
for the microtechnology industry. Our systems enable precise structuring of
micron to submicron features in electronic devices, semiconductors, LEDs and
other high-value components. We partner with our customers to make
breakthrough technologies possible in the microelectronics, semiconductor and
other emerging industries. Founded in 1944, ESI is headquartered in Portland,
Ore., with global operations from the Pacific Northwest to the Pacific Rim.
More information is available at www.esi.com.
About GSI Inc.
GSI Group Inc. supplies precision photonics, laser-based solutions and
precision motion devices to the medical, industrial, scientific, and
electronics markets. GSI Group Inc.'s common shares are quoted on NASDAQ
(GSIG). More information about GSI is available on the Company's website at
www.gsig.com. For additional information, please contact GSI Group Inc.
Investor Relations at (781) 266-5137 or InvestorRelations@gsig.com.
This press release includes forward-looking statements about the expected
timing of closing, our revenue and earnings and the markets we serve. These
forward-looking statements are based on information available to us on the
date of this release and we assume no obligation to update these
forward-looking statements for any reason. Actual results may differ
materially from those in the forward-looking statements. Risks and
uncertainties that may affect the forward-looking statements include: the risk
that the transaction fails to close; the risk that we fail to successfully
integrate the SSD business; the risk that the costs of operating the SSD
business are greater than anticipated; the risk that revenues generated by the
SSD business are lower than anticipated.
Photos/Multimedia Gallery Available:
Brian Smith, 503-672-5760
GSI Group Inc.
Robert Buckley, 781-266-5137
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