Equipment suppliers Aixtron and Genus to merge
MOCVD equipment manufacturer Aixtron, and Genus, a supplier of atomic layer deposition technology to the semiconductor and hard disk drive industries, are planning to merge. The merger will create one of the world s leading suppliers of advanced deposition equipment.
Aixtron intends to acquire all outstanding Genus shares in a stock-for-stock transaction worth around $143 million. Genus shareholders will receive 0.51 American Depository Receipts (ADRs) of Aixtron per Genus share, and on completion of the transaction ADRs will be quoted on NASDAQ. Each Genus share is valued at $3.61 on this basis.
On completion of the deal, Aixtron s shareholders will hold about 74% of the merged company and Genus shareholders 26%.
Paul Hyland will remain president and CEO of Aixtron, while William Elder, president and CEO of Genus, will join the Aixtron management board. The transaction, which will form a company with over 550 employees, is expected to close by year-end.
"Both companies have more than 20 years of experience in the semiconductor equipment business and are an ideal fit," said Hyland.
Aixtron has also issued preliminary results for its second fiscal quarter, which ended on 30 June. The forecast for total revenue in 2004 has been increased from €121 million ($148 million) to €130-140 million ($160-172 million). Net profit is now expected to be €2-5 million, compared with the previous prediction of break-even.
