Onto Innovation Boosts Semiconductor Portfolio with $545M Semilab Acquisition
Onto Innovation has announced a significant acquisition, purchasing Semilab International's materials analysis business for $545 million. The deal is expected to immediately boost margins and increase earnings per share by over 10% in the first year.
The acquisition, valued at $545 million in cash and shares, includes Semilab's materials characterization team. Onto Innovation's CEO, Mike Plisinski, expressed excitement about welcoming the team and expanding the company's portfolio.
The acquired business has grown at a compound annual growth rate of 20% since 2021 and is projected to generate $130 million in annual revenue by 2025. Onto Innovation plans to integrate its Ai Diffract modeling engine and advanced dimensional metrology to enhance customer value and speed yield learning.
The acquisition adds four complementary product lines for inline wafer contamination monitoring and materials interface characterization, aligning with Onto Innovation's strategy to excel in high-growth, high-margin segments of the semiconductor value chain, particularly for AI applications.
The acquisition is expected to be immediately accretive to gross and operating margins, increasing non-GAAP earnings per share by more than 10% in the first year following close. It adds over $130 million to Onto Innovation's annual revenue, strengthening its position in the semiconductor industry.
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