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Oxford Instruments buys Thermo VG Semicon

After months of speculation over the fate of MBE equipment supplier Thermo VG Semicon, the company’s acquisition by Oxford Instruments has finally been announced.
Oxford Instruments Plasma Technology, a supplier of plasma and ion beam processing equipment to the photonics, MEMS and semiconductor industries, has acquired the assets of Thermo VG Semicon, a leading supplier of MBE equipment.

Oxford Instruments will pay $0.3 million in cash for VG Semicon, plus a deferred consideration of $0.2 million payable in two equal instalments on the first and second anniversaries of completion.

Further contingent payments may also be made in 2005 and 2006, if exceptional sales growth targets are met, taking the maximum value of the deal to $1.3 million.

VG Semicon, based in East Grinstead, UK, was previously part of the giant Thermo Electron Corporation. Oxford Instruments Plasma Technology, based in Yatton, UK, is a subsidiary of Oxford Instruments, a publicly traded UK instrumentation company.

In the six months to 28 June 2003, VG Semicon reported sales of $4.0 million and a break-even operating result before restructuring costs. A cost-reduction programme at VG Semicon has already taken place earlier this year, and the company shed a large number of staff.

Oxford Instruments says that its priority is to increase the depth of management in the business and to make appropriate use of many complementary operational strengths within the company. The acquisition is expected to enhance the earnings of Oxifrd Instruments in the current financial year.

“We had previously identified MBE technology as an area that would offer an excellent strategic fit with our existing business.,” said Jim Hutchins, who was recently appointed as Managing Director of Oxford Instruments Plasma Technology.

“VG Semicon is a recognized leader in its field and we believe we can achieve significant synergies in manufacturing, product development and sales and support operations, particularly since we already serve many of the same customers. We look forward to reaffirming VG Semicon’s number one position in the market place.”

VG Semicon’s V100 is the most widely used MBE system worldwide for the mass production of advanced GaAs-based electronic devices, and more than 150 of its V80H research systems have been installed worldwide.

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