Kulicke & Soffa Announces Agreements to Acquire Orthodyne Electronics and Divest its Wi... - 0 views
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xxx xxx on 15 Aug 08Kulicke & Soffa Industries Inc (K&S) has announced that the company has entered into definitive agreements to acquire substantially all of the assets of Orthodyne Electronics Corporation, a supplier of wedge bonders, and sell the K&S wire business unit to WC Heraeus GmbH, a precious metals and technology group. Under the terms of the Orthodyne agreement, K&S will fund the acquisition of Orthodyne with approximately 7.1 million shares of K&S common stock, plus $80 million in cash. If the transaction is not consummated by October 31, 2008, the purchase price will be approximately 19.6 million shares of K&S common stock and no cash. The deal includes possible earn-out consideration up to an additional $40 million in cash if certain financial objectives are met by Orthodyne over the next three years. The closing of the transaction, which is expected within approximately 60 days, is subject to certain working capital adjustments and closing conditions, including regulatory approvals. "The acquisition of Orthodyne is in line with our stated strategy and positions K&S to capitalize on our strengths in equipment manufacturing and further cement our position as the leading supplier of interconnect solutions," commented Scott Kulicke, Chairman and Chief Executive Officer of K&S. "Orthodyne is a fast growing, profitable market leader and provides us with deeper penetration into the discrete side of the semiconductor market, particularly in the attractive power management and hybrid module markets."