Market Overview

Cascade Microtech To Be Acquired By FormFactor For $21.23 Per Share


Cascade Microtech, Inc. (NASDAQ: CSCD), a developer, manufacturer and marketer of wafer probing, thermal and reliability solutions, announced on Thursday it has agreed to be acquired by FormFactor, Inc. (NASDAQ: FORM).

As part of the agreement, Cascade shareholders will receive $16.00 in cash and 0.6534 of a share of FormFactor for each common share they already own. The transaction values Cascade's stock at $21.13 per share based on FormFactor's closing price of $7.85 on Wednesday.

Shares of Cascade were trading higher by more than 30 percent at $20.15 Thursday afternoon, while shares of Form Factor were lower by nearly 13 percent at $6.86.

According to Cascade's press release, the combination will create "significant scale" by combining complementary market leadership positions in semiconductor test, measurement and characterization applications.

FormFactor expects the acquisition to be immediately accretive to its earnings per share and expects to realize $10 million to $12 million in annualized synergies within 18 to 24 months of closing.

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"We are extremely excited to be uniting FormFactor and Cascade today," said Mike Slessor, FormFactor's president and Chief Executive Officer. "The combination of our products, technologies, and addressable markets enables us to rapidly take the next step in achieving FormFactor's strategic growth objectives. At the same time, we are able to realize significant financial synergies that the two companies would not be able to realize on their own."

"I am enthusiastic about the combination with FormFactor as both companies share a legacy of innovation and technology development," said Mike Burger, Cascade's president and Chief Executive Officer. "As a combined entity, FormFactor and Cascade will be the leader in the production probe card and engineering systems markets. The combination of Cascade and FormFactor creates a larger, stronger company that will drive long-term value for our customers, employees, partners, and shareholders."


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