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FormFactor acquires Beaverton's Cascade Microtech

FormFactor of Livermore, Calif., and Beaverton's Cascade Microtech have announced an agreement where FormFactor will acquire all outstanding shares of Cascade Microtech in a cash and stock transaction.

Both firms create products that enable semiconductor and electronics manufacturers to test complex electronic devices, chips, wafers and systems.

“The combination of our products, technologies and addressable markets enables us to rapidly take the next step in achieving FormFactor’s strategic growth objectives,” says Mike Slessor, FormFactor’s president and chief executive officer. “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.”

Cascade stockholders will receive $16 in cash, plus 0.6534 shares of FormFactor stock for each share of Cascade they currently own. Based on FormFactor's closing share price of $7.85 on Feb. 3, it represents a value of $21.13 per share, or a total equity value of $352 million.

The combined revenues of the two companies would have reached $426 million in 2015. FormFactor employs approximately 950 workers across locations in eight countries, while Cascade Microtech's locations in six countries employ about 500.

FormFactor intends to fund the cash portion of the transaction with $120 million cash on hand and approximately $150 million in debt financing. The acquisition is expected to be completed by the middle of 2016, pending shareholder and regulatory approvals.

Portland law firm Perkins Coie represented Cascade Microtech in the transaction.

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