Ceradyne announced its agreement to buy semiconductor technology company SemEquip on July 9, 2008, and completed the acquisition on August 11. Ceradyne paid about $25 million at closing, with up to $100 million in additional payments tied to SemEquip’s revenue over 15 years. The deal gave Ceradyne a foothold in cluster-ion implantation technology and semiconductor manufacturing.
When did Ceradyne acquire SemEquip?
Ceradyne announced a definitive acquisition agreement on July 9, 2008. The transaction closed on August 11, 2008, through Ceradyne’s wholly owned SEI Acquisition Co. SemEquip then became a wholly owned Ceradyne subsidiary. Ceradyne’s July 9 announcement and closing announcement document the agreement and completion.
How much did Ceradyne pay?
The deal’s headline terms called for approximately $25 million in cash at closing and contingent payments of up to $100 million over 15 years, based on SemEquip’s revenues. The $100 million was a maximum contingent amount, not a guaranteed payment. Ceradyne’s announcement and closing announcement describe these terms.
Ceradyne’s acquisition accounting reported a total purchase price of $51.348 million. That accounting figure is not the same as the approximately $25 million headline closing payment: it included $26.166 million in accrued purchase consideration and $1.867 million in direct transaction fees and expenses. Ceradyne also recorded $23.315 million as cash consideration paid to SemEquip stockholders. These are separate accounting components, not interchangeable descriptions of the deal’s cash paid at closing. Ceradyne’s 2008 acquisition accounting sets out the amounts.
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What did SemEquip make?
Based in North Billerica, Massachusetts, SemEquip developed cluster-ion implantation subsystems and advanced ion-source materials for making logic and memory chips. Ceradyne described the technology as enabling cluster-beam ion implantation for advanced integrated circuits with low cost and high throughput. Ceradyne’s description of SemEquip gives the company’s location and business.
Ceradyne’s later annual report says SemEquip developed and marketed cluster molecules, including B18H22, for boron ion implantation in semiconductor manufacturing. The report also says SemEquip held approximately 107 issued patents and pending patent applications. Ceradyne’s annual report provides those details.
What is cluster-ion implantation?
Ion implantation is a semiconductor manufacturing process that introduces ions into a material to alter its electrical properties. In the cluster approach described by Ceradyne, molecules such as B18H22 serve as the source for implantation rather than relying only on individual ions. SemEquip’s subsystems and ion-source materials supported this process for chip production. Ceradyne said the approach could support advanced integrated circuits at low cost and high throughput; that is the company’s characterization, not an independently measured comparison. Ceradyne’s announcement and annual report describe the technology and molecules.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why did Ceradyne buy SemEquip?
Ceradyne presented the acquisition as vertical integration: bringing a semiconductor-related technology and materials business inside the company, consistent with its stated approach of manufacturing final products using Ceradyne-produced raw materials. Company president David Reed said, “The SemEquip acquisition follows the vertical integration model we have successfully used in the past which includes the manufacture of final products utilizing Ceradyne-produced raw materials.” Ceradyne’s announcement includes the statement.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteThe purchase was also intended to broaden Ceradyne’s participation in future semiconductor markets. SemEquip’s cluster-ion technology, ion-source materials, and patent portfolio gave Ceradyne a position in a specialized part of logic and memory chip manufacturing. Ceradyne stated that strategic rationale in its later filing. Ceradyne’s filing describes the acquisition as vertical integration and market expansion.
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